Czech Central Bank Governor To Propose Stunning $7 Billion Bitcoin Reserve Plan
Czech National Bank (CNB) Governor Ale Michl said in a recent interview that he is set to present a Bitcoin investment plan to the board on Thursday, which, if approved, could see the apex bank potentially acquire $7 billion in BTC as part of its diversification strategy.
This would make CNB the first central bank to hold the premier crypto.
Czech National Bank May Allocate 5% Of Reserves To Bitcoin
Speaking with Financial Times (FT), Czech central bank chief Ale Michl revealed that he wants to add billions of dollars worth of the countrys reserves into Bitcoin. Michl will submit a plan to allocate as much as 5% of its 140 billion (or $146 billion) of the banks reserves to BTC.
For perspective, such a Bitcoin buy would be equivalent to around 5.3 months of newly minted BTC, as noted by André Dragosch, head of research at Bitwise.
Michl acknowledged Bitcoins significant volatility and limited track record but noted increased investor appetite since BlackRock and other investment managers listed spot Bitcoin exchange-traded funds (ETFs) and President Donald Trumps campaign promises on crypto deregulation, and the establishment of a national BTC stockpile.
For the diversification of our assets, Bitcoin seems good, Michl told FT, adding that he had a different stance than other central bankers in matters of crypto.
Of course, if you compare my position with other bankers, then Im the one entering the jungle or the pioneer. I used to run an investment fund, so Im a typical investment banker I would say, I like profitability.
Trumps Crypto-Friendly Regime To Spark Bitcoin Rally
President Trumps return to the White House has bolstered optimism in the crypto industry due to heightened expectations of a more lenient regulatory environment for digital assets. Michl believes Trumps crypto-friendly stance will potentially light a fire under the bulls, setting up the crypto for a break to new sky-high levels.
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 its an alternative [investment] for more people.
The CNB governor further suggested that more central banks around the world could follow his example in the coming five years, but he also cautioned that the investment could end up being worthless.
Its possible to have a big range of outcomes, that Bitcoin will have a value of zero or an absolutely fantastic value.
The worlds largest crypto briefly hit a record $108,786 just before President Trumps inauguration on Jan. 20 but has since retraced to $105,251 as of publication time.
Read more: https://zycrypto.com/czech-central-bank-governor-to-propose-stunning-7-billion-bitcoin-reserve-plan/
Text source: ZyCrypto
