Could Bitcoin become part of a European central bank’s official reserves? It might sound far-fetched, but in the Czech Republic, it could actually happen. Aleš Michl, the head of the Czech National Bank, wants to invest up to 5% of the country’s national reserves in Bitcoin.
A Central Bank Holding Bitcoin?
Michl plans to present his idea to the central bank’s board soon. If approved, the Czech Republic would be the first Western central bank to add Bitcoin to its balance sheet.
The bank currently manages about $140 billion in reserves. If Michl’s plan goes through, the institution could buy more than $7 billion worth of Bitcoin. That’s a big move for a central bank, especially in Europe, where most prefer to hold traditional assets like gold and government bonds.
Why Bitcoin?
Michl believes Bitcoin can help diversify the country’s reserves while also offering the potential for higher returns. He points to the increasing acceptance of Bitcoin, including the introduction of spot Bitcoin ETFs and recent signs of support for crypto-related assets in the U.S.
With digital assets becoming a bigger topic of discussion, even newly elected U.S. President Donald Trump has reportedly explored the idea of the U.S. building a national stockpile. Despite political uncertainty, Michl remains confident that Bitcoin’s long-term value will continue to rise, as more people see it as a serious alternative to traditional financial assets.
A Different View from Other Central Banks
Unlike most central bankers who prefer conventional investment strategies, Michl takes a different approach. With his background in investments, he focuses on potential profitability rather than simply avoiding risk. He acknowledges that his view stands apart from others in the banking world but sees the move as a strategic opportunity.
The central bank’s board will ultimately decide whether to move forward with the proposal. If approved, it could encourage other central banks and countries to reconsider their stance on Bitcoin and digital assets, as they will start to race to be among the early adopters.
If you’d like to know more about Bitcoin and its place in National Reserves, this paper by the Bitcoin Policy Institute (BPI) explains why central banks should consider Bitcoin as a reserve asset.
Keep following us at HowToBuyBitcoin.org and be first to hear what nations will start buying Bitcoin and try to stay ahead of the others.