Update (Jan. 30, 3:15 pm UTC): This article has been updated to include an official announcement by the Czech National Bank.
The Czech National Bank (CNB) has addressed a proposal submitted by Governor Aleš Michl to set up a $7 billion Bitcoin reserve amid ongoing concerns from local authorities.
Ahead of the CNB’s Jan. 30 board meeting, Czech Finance Minister Zbynek Stanjura warned against the proposal to invest up to 5% of the central bank’s reserves in Bitcoin (BTC), Bloomberg reported on Jan. 30.
The official specifically highlighted Bitcoin’s highly volatile nature, which does not align with the stability promised by central banks.
“The central bank should symbolize stability. If you look at Bitcoin trading, it’s definitely not a stable asset,” Stanjura reportedly said.
CNB votes to explore “other asset classes” but doesn’t name Bitcoin
On Jan. 30, Michl proposed a Bitcoin acquisition plan at the bank’s board meeting.
The industry widely expected the meeting to lead to the CNB deciding whether it would put $7 billion from its reserves into Bitcoin.
The board, however, only concluded that the Czech central bank would explore a potential addition of new asset classes into its reserves. The announcement did not name Bitcoin among the potential asset classes.
”At the suggestion of Governor Aleš Michl, the CNB will assess whether it would be appropriate, from the perspective of diversification and yield, to expand foreign exchange reserves to include investments in other asset classes.”
“Bitcoin has significant volatility, which makes it harder to take advantage of its current low correlation with other assets,” Michl said in a statement on X on Jan. 29.
Michl also noted that there’s no imminent decision, as “thoughtful analysis is needed.”
CNB press release addressing Bitcoin reserve proposal. Source: CNB
Local industry firms welcome the potential move
Major industry firms in the Czech Republic have welcomed Michl’s proposal, saying it reflects a forward-thinking strategy to diversify away from the euro and embrace Bitcoin's long-term potential.
“The Czech Republic has long been a leader in Bitcoin innovation — home to the first mining pool, the first hardware wallet, and one of the largest Bitcoin conferences in the world, held annually in Prague,” Trezor analyst Lucien Bourdon told Cointelegraph.
Source: David Bailey
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While some might argue that Bitcoin’s original mission was not to be allocated to reserves by global central banks, Bourdon doesn’t believe that’s the case.
“Rather than centralization, this reflects Bitcoin’s growing role as a reliable asset in an evolving financial system,” Bourdon said, adding:
“The reality is that Bitcoin must be valuable to all participants — individuals, institutions and states — while ensuring that no entity can exert unilateral control over its network. The fact that central banks are now competing to acquire Bitcoin validates its resilience and desirability.”
The news comes amid US lawmakers actively pushing strategic Bitcoin reserve initiatives in multiple states and on the federal level.
On Jan. 29, Senator Cynthia Lummis pushed the US to adopt a strategic Bitcoin reserve ahead of the Czech Republic.
Meanwhile, European Central Bank President Christine Lagarde said on Jan. 30 that she was confident Bitcoin would not enter reserves in the European Union.
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