The Czech National Bank to Explore Bitcoin Inclusion in Reserve Assets
The Czech National Bank (CNB) announced plans to explore the potential inclusion of Bitcoin (BTC) in its reserve assets on Jan. 30. This move comes despite European Central Bank (ECB) President Christine Lagarde’s vocal opposition to central banks holding the crypto.
Review of International Reserve Management Strategy
During a Jan. 30 meeting, the CNB Bank Board reviewed a 2024 international reserve management strategy document and approved a proposal to analyze additional asset classes for potential investment.
“The CNB has been actively diversifying its investments over the last two years as part of a broader reserve management strategy. The Bank Board will evaluate whether expanding into other asset classes aligns with our diversification and return objectives.”
While the decision to analyze Bitcoin does not immediately translate into an investment, it signals an increasing openness among certain European monetary authorities toward digital assets.
The CNB confirmed that it will implement no changes in its reserves until a thorough review is conducted. The findings will guide the board’s future decisions on reserve allocation. Any updates to reserve portfolios will be disclosed in CNB’s quarterly reports and annual financial statements.
Reports suggest that CNB was considering allocating up to 5% of its reserves to BTC, which would amount to over $7 billion. Additionally, Michl expressed during a Jan. 6 interview with CNN Prima News that Bitcoin is a “very interesting thing” and provides a “very interesting” way of diversification against other assets if its code is really what people advocate.
ECB’s Opposition to Bitcoin Inclusion
The CNB’s exploratory approach contrasts sharply with the stance of European Central Bank (ECB) President Christine Lagarde, who recently warned against central banks holding Bitcoin.
“I think there is a view around the table of the governing council, and most likely the General Council as well, that reserves have to be liquid, secure, that they have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities.”
Lagarde also expressed confidence that Bitcoin would not enter the reserves of any central bank on the ECB’s General Council.
A global move is underway to implement Bitcoin within national reserves. President Donald Trump signed an executive order allowing a newly formed crypto working group to assess and potentially establish a crypto stockpile. Meanwhile, Coinbase CEO Brian Armstrong recently said during the World Economic Forum that countries from the G20 will consider a Bitcoin reserve if the US follows through with its push.