Czech National Bank Governor Aleš Michl recently highlighted the government’s growing interest in cryptocurrencies as a savings technology, viewing Bitcoin as a potential diversification strategy for the country’s foreign exchange reserves.
In an interview with CNN Prima News, Michl said he was considering acquiring “some Bitcoin” for diversification, which he does not consider a significant investment for the bank.
The Czech National Bank’s seven-member board of directors must approve the decision to acquire Bitcoin.
When asked about a potential acquisition, Board Advisor Janis Aliapulios confirmed that the bank is not currently planning to invest in Bitcoin (BTC). Nonetheless, Michl is still open to considering Bitcoin diversification in the future.
“In summary, the CNB is not currently considering purchasing cryptocurrency assets with its reserves. However, Governor Michl did not rule out further discussions on this topic in the future,” Aliapulios told Cointelegraph.
The bank will continue its diversification plan through gold purchases in the near future and plans to increase its gold holdings to about 5% of total assets by 2028, Aliapulios added.
Bitcoin could emerge as the second most important reserve asset after gold thanks to its strong annual returns. Bitcoin is up more than 131% over the past year, while gold prices are up about 30%, according to TradingView data.
BTC and gold, 1 year chart. Source: Cointelegraph/TradingView
Bitcoin’s 130% annual return occurred while corporate executives were selling shares at unprecedented levels, with a ratio of six buyers to sellers, Cointelegraph reported on December 13.
According to author and intergovernmental blockchain expert Anndy Lian, Michl’s comments signal a growing shift among governments and institutions reevaluating their financial strategies to include Bitcoin.
“As more countries consider this path, we will see a gradual redefinition of what constitutes a ‘safe’ reserve asset. “If Bitcoin becomes an integral part of national reserves, it could fundamentally change the landscape of global finance, driving a more decentralized and digital approach to economic stability.”
But Bitcoin’s price volatility could also be a “double-edged sword” for the country’s reserves, which could lead to broader financial volatility, Lian added.
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US Bitcoin law could strengthen Bitcoin’s status as a savings technology.
Bitcoin’s status as a savings technology is also gaining attention in the United States. Known as one of the most anticipated cryptocurrency-related bills, the Bitcoin bill (championed by Wyoming Senator Cynthia Lummis) proposes the creation of a strategic Bitcoin reserve.
Loomis Bitcoin Law. Source: Lummis.senate.gov
According to Anastasija Plotnikova, co-founder and CEO of Fideum, the Bitcoin holding proposal is gaining significant support thanks to US President-elect Donald Trump’s victory in the November 2024 election and the Republican Senate majority.
If there is bipartisan support, the bill could be approved within the next four years. “Momentum is building at the state level, with initiatives like Pennsylvania’s Bitcoin Strategic Reserve Act serving as a model for broader adoption,” Plotnikova said.
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The idea of strategic Bitcoin reserves has received support from both sides of politics, including Democratic Rep. Ro Khanna, the first Democratic member of Congress to support Bitcoin reserves.
Texas and Pennsylvania have also proposed similar proposals.
Bitcoin could eventually surpass the $1 million price tag if the Bitcoin law is approved by U.S. lawmakers, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most prominent cryptocurrencies in the industry. do.
Eric Trump explains how his father could push BTC to $1 million Source: Cointelegraph/YouTube
magazine: BTC Hits $100,000, Trump Appoints Paul Atkins as SEC Chairman, and More: Hodler’s Digest, December 1-7