The governor of the Czech National Bank, Aleš Michl recently considered Bitcoin as a potential diversification strategy for the country’s foreign exchange reserves, highlighting growing government interest in cryptocurrency as a savings technology.
In an interview with CNN Prima News, Michl said he was considering acquiring “a few Bitcoin,” for diversification, which wouldn’t count as a significant investment for the bank.
The Czech National Bank’s board, composed of seven members, would need to approve any decision to acquire Bitcoin.
When asked about a potential acquisition, Janis Aliapulios, Janis Aliapulios, an adviser to the board, confirmed that the bank is not currently planning a Bitcoin (BTC) investment. However, Michl remains open to considering Bitcoin diversification in the future.
“To sum up, CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic,” Aliapulios told Cointelegraph.
The bank will continue its diversification plan via gold purchases in the near future, with plans to increase gold holdings to approximately 5% of its total assets by 2028, Aliapulios added.
Bitcoin could emerge as a significant reserve asset next to gold, thanks to its robust yearly returns. During the past year, Bitcoin rose by over 131% while gold prices rose by only over 30%, TradingView data shows.
BTC and gold, 1-year chart. Source: Cointelegraph/TradingView
Bitcoin’s 130% yearly returns occurred while corporate executives were selling stocks at unprecedented levels at a ratio of six sellers to buyers, Cointelegraph reported on Dec. 13.
Michl’s remarks suggest a growing shift among governments and institutions reevaluating their financial strategies to include Bitcoin, according to Anndy Lian, author and intergovernmental blockchain expert:
“As more countries ponder this path, we might see a gradual redefinition of what constitutes a ‘safe’ reserve asset. If Bitcoin becomes a staple in national reserves, it could fundamentally alter the landscape of global finance, pushing for more decentralized and digital approaches to economic stability.”
However, Bitcoin’s price volatility may also be a “double-edged sword” for national reserves, which could lead to wider financial swings, added Lian.
Related: Bitcoin needs trading volume boost to rally above $105K in January
US Bitcoin Act may bolster Bitcoin’s status as a savings technology
Bitcoin’s status as a savings technology is also gaining traction in the United States. Known as one of the most anticipated crypto-related bills, the Bitcoin Act — championed by Wyoming Senator Cynthia Lummis — proposes the creation of a strategic Bitcoin reserve.
Lummis Bitcoin Act. Source: Lummis.senate.gov
The Bitcoin reserve proposal is gaining significant support thanks to US President-elect Trump’s victory in the November 2024 election and the incoming Republican Party Senate majority, according to Anastasija Plotnikova, co-founder and CEO of Fideum.
With bipartisan support, the bill could be accepted during the next four years. “State-level momentum is building, with initiatives such as Pennsylvania’s Bitcoin Strategic Reserve Act serving as a model for broader adoption,” Plotnikova said.
Related: 3 major developments that spurred crypto adoption in 2024
The idea of a strategic Bitcoin reserve received support from both sides of the political aisle, including from Democratic Party Representative Ro Khanna, the first Democratic lawmaker to back a Bitcoin reserve.
The states of Texas and Pennsylvania have also made similar proposals.
Bitcoin may eventually surpass the $1 million price tag if the Bitcoin Act is accepted by US lawmakers, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry.
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: Cointelegraph/YouTube
Magazine: BTC hits $100K, Trump taps Paul Atkins for SEC chair, and more: Hodler’s Digest, Dec. 1–7
