Bitcoin (BTC)
Laws and regulations
SEC will withdraw charges against Coinbase
21-02-2025
News - Czech Central Bank chief is open to Bitcoin: Will there be a Reserve?
By
19-02-20252 min read
Czech Central Bank chief is open to Bitcoin: Will there be a Reserve?
Ales Michl, chief of the Czech central bank CNB, is calling on other central bankers to study Bitcoin. "Studying Bitcoin will not hurt us - on the contrary, it will strengthen us," the 47-year-old writes in a post on the social media platform X.
Bitcoin Update:
— Aleš Michl (@MICHLiq_) February 19, 2025
I’ll start broadly: if you intend to invest in crypto assets, exercise extreme caution. The market is still in its infancy. I remember the 1990s in our country, when the transition from socialism to capitalism saw the birth and simultaneous collapse of many… https://t.co/UxGF0R7NwO
At a meeting of his bank on Jan. 30, Michl proposed exploring the possibility of setting up a Bitcoin reserve in the Czech Republic. The board agreed. The plan would allow up to 5 percent of all CNB reserves to be held in BTC. This plan is currently under investigation.
Currently, the central bank has US$146 billion in reserves. Bitcoin could therefore represent an equivalent of US$7.3 billion.
A warning about this plan, however, came from Frankfurt am Main. Christine Lagarde, the president of the European Central Bank, was skeptical of the idea of such a reserve.
Michl acknowledges that Bitcoin is a "highly volatile" asset and believes its value can only go in two directions - "either to zero or to a very high amount."
