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Czech Central Bank Governor To Propose Stunning $7 Billion Bitcoin Reserve Plan
In a shocking move, the Czech National Bank (CNB) Governor Aleš Michl has announced his plan to propose an astonishing investment of $7 billion in Bitcoin. This unprecedented decision would see the apex bank potentially acquire billions worth of the premier cryptocurrency as part of its diversification strategy.
Speaking with Financial Times (FT), Michl revealed that he intends to submit a plan to allocate up to 5% of the country’s reserves, which amounts to approximately €140 billion ($146 billion). This massive investment would be equivalent to around 5.3 months of newly minted BTC, as noted by André Dragosch, head of research at Bitwise.
The CNB chief acknowledged Bitcoin’s significant volatility and limited track record but emphasized the increased investor appetite since BlackRock and other investment managers listed spot Bitcoin exchange-traded funds (ETFs) and President Donald Trump’s campaign promises on crypto deregulation. He also highlighted the establishment of a national BTC stockpile as factors contributing to his proposal.
“For the diversification of our assets, Bitcoin seems good,” Michl told FT, adding that he has a different stance than other central bankers in matters of crypto. “Of course, if you compare my position with other bankers, then I’m the one entering the jungle or the pioneer. I used to run an investment fund, so I’m a typical investment banker – I like profitability.”
Michl also expressed optimism regarding Trump’s crypto-friendly stance, which he believes may lead to a significant Bitcoin rally. “Those [Trump] guys can now kind of create some bubble for Bitcoin, but I think the trend would be an increase without those guys as well because it’s an alternative [investment] for more people.”
The proposal, if approved, would make the Czech National Bank the first central bank to hold the premier crypto.
It remains unclear whether Michl’s proposal will be accepted or when any potential decision may be made public. However, this bold move has sent shockwaves through the cryptocurrency market, with many experts weighing in on the implications of such a massive investment.
As for what lies ahead, Michl cautioned that outcomes could range from Bitcoin’s value being zero to an absolute fantastic value. The world’s largest crypto briefly hit a record $108,786 just before President Trump’s inauguration but has since retraced to $105,251 as of publication time.
The prospect of a major central bank entering the cryptocurrency market has sparked widespread interest and debate within the community.
Source: zycrypto.com
