Czech National Bank Considering Bitcoin Investment

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The Czech National Bank’s governor, Aleš Michl, has suggested that the country’s foreign exchange reserves could be diversified by investing in Bitcoin.

This reflects the government’s increasing interest in cryptocurrency as a means of saving. Although he mentioned considering acquiring a small amount of Bitcoin, this would not be a significant investment for the bank.

Any decision to invest in Bitcoin would need to be approved by the seven-member board of the Czech National Bank. While an adviser to the board stated that there are no current plans to invest in Bitcoin, Michl remains open to the idea for future diversification.

Despite this potential, the bank plans to continue its diversification strategy through purchasing gold, aiming for a 5% holding of its total assets by 2028. This is due to the strong yearly returns of Bitcoin, with a 131% increase in the past year, compared to a 30% increase in gold prices.