The Central Bank of Czechia Considering Bitcoin for Reserves Diversification
The Governor of the Czech National Bank (ČNB), Aleš Michl, recently discussed the possibility of allocating Bitcoin (BTC) to diversify the bank’s reserves during an interview with CNN Prima News.
Importance of Diversification
Michl emphasized the importance of diversifying the bank’s holdings among stocks, bonds, gold, and cash deposits to mitigate risks.
Consideration of Bitcoin
While considering adding Bitcoin to its reserves, Michl mentioned that the ČNB would only add “just a few” BTC and had no plans for massive investments in the cryptocurrency. He believed that gold investments would provide sufficient diversification.
Foreign Currency Diversification Plan
As part of its foreign currency diversification plan, the Czech National Bank aims to hold 100 tons of gold within the next four years. The board members of the ČNB will continue to discuss the potential addition of Bitcoin to their reserves.
Positive Outlook on Bitcoin
In previous interactions, Michl has displayed a positive attitude towards Bitcoin. During an educational visit to a Czech elementary school, he addressed students’ questions about investments and the future of Bitcoin. He emphasized the importance of understanding investment principles and conducting thorough research before making investment decisions.
Legislation Approval
The Czech Republic approved legislation granting exemptions for income from crypto transfers in December 2024. Individuals can claim an exemption if their total gross annual income from these transactions does not exceed CZK 100,000 and if they held digital assets for more than three years before selling.
