CNB Proposes Exploring Bitcoin as Reserve Asset

The Czech National Bank (CNB) has approved a proposal to study the possibility of investing its reserves in additional asset classes, including potentially adding Bitcoin (BTC) to its balance sheet. The proposal was put forward by CNB Governor Aleš Michl, who has expressed interest in exploring Bitcoin as a reserve asset.

In an interview with the Financial Times earlier this week, Michl stated that his goal is to diversify the bank's portfolio, and if Bitcoin proves to be a suitable option, it could be considered. The CNB's board approved the proposal on Thursday, and the bank will now conduct an analysis to determine the feasibility of investing in additional asset classes. No changes will be implemented until the results of the analysis are known.

However, not everyone in the Czech Republic's government supports the idea of exploring Bitcoin as a reserve option. Finance Minister Zbynek Stanjura has stated that the central bank should symbolize stability, and Bitcoin's volatility makes it an unsuitable asset for reserves. Additionally, European Central Bank (ECB) President Christine Lagarde has expressed confidence that Bitcoin will not enter the reserves of any European Union central banks.

The Czech Republic, while not using the euro, is a member of the European Union. The CNB has not commented on the specific assets it is considering for its reserve portfolio.