Czech Central Bank Governor Plans to Advocate for Bitcoin in Reserves: FT

Czech Central Bank Governor Considers Bitcoin for Reserve Diversification

Ales Michl, Governor of the Czech National Bank, plans to propose a Bitcoin investment strategy to the central bank’s board on Thursday. If approved, the bank could allocate up to 5% of its $146.13 billion reserves to Bitcoin, according to an interview published by the Financial Times (FT).

“Bitcoin appears to be a suitable asset for diversification,” Michl stated in the interview, as reported by FT and Reuters. He pointed to the increasing institutional adoption of Bitcoin, particularly following the approval of spot Bitcoin ETFs by major financial firms like BlackRock last year.

“Bitcoin is currently being analyzed as a potential reserve asset. Its low correlation with bonds makes it an interesting addition to a large portfolio,” Michl wrote on X (formerly Twitter). “Right now, it’s just a topic of discussion. The Bank Board will decide, and no immediate action is planned. We need to conduct a careful evaluation.”

Michl also acknowledged Bitcoin’s high volatility, which could pose challenges for reserve management. “Because of Bitcoin’s price swings, its role in a reserve portfolio needs thorough examination. That’s why on Thursday, I will ask our team to further analyze its potential as part of our reserves. No decisions yet—just research,” he added.