The governor of the Czech National Bank (CNB), Aleš Michl, has suggested the possibility of holding up to five percent of the bank’s €140 billion reserves in bitcoin. If implemented, this would make the CNB the first Western central bank to hold the notoriously volatile cryptocurrency as a reserve asset, marking a significant departure from traditional conservative holdings.
In an interview with the Financial Times, Michl noted that the recent election of Donald Trump has contributed to bitcoin’s soaring value, doubling in recent months. He suggested that this political shift could present an opportunity for central banks to consider alternative assets. “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,” he stated.
Michl also posted on X that bitcoin is under consideration as part of the CNB’s reserve strategy, emphasizing its zero correlation to bonds and its potential value in a diversified portfolio. He clarified that the idea remains at the analysis and discussion stage but plans to present it to the CNB’s seven-member board this week.
His openness to bitcoin stands in contrast to other central bankers, many of whom remain skeptical. Earlier this month, Bundesbank chief Joachim Nagel likened bitcoin to “digital tulips,” referencing the speculative Dutch tulip bubble of the 17th century. Similarly, South Africa’s central bank governor dismissed the idea of a national bitcoin stockpile.
If the Czech central bank moves forward with the idea, it could represent a groundbreaking shift in how central banks approach digital assets, potentially paving the way for wider institutional adoption.