The head of the Czech National Bank is reportedly proposing to invest 5% of the country’s reserves in Bitcoin (BTC).
In a new interview with The Financial Times, Aleš Michl says he plans to propose a Bitcoin reserve strategy at the bank’s seven-member board meeting on Thursday, which could make it the first Western central bank to hold crypto.
Michl says if his pitch is approved the bank could invest as much as 5% of its 140 billion euro ($146 billion) reserves in Bitcoin.
He believes the flagship crypto asset is an opportunity to increase the diversification of the country’s investment portfolio and generate larger returns.
Michl points to the greater adoption of Bitcoin, such as the spot market exchange-traded funds (ETFs), and the recent pro-crypto actions by US President Donald Trump, who ordered a study of creating a national stockpile of digital assets.
He notes that even without Trump’s actions, he believes Bitcoin would still rise in value.
“For the diversification of our assets, Bitcoin seems good. 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.”
Michl acknowledges his viewpoint conflicts from other bankers, but he believes it will lead to a better-performing investment portfolio.
“Of course, if you compare my position with other bankers, then I’m the one entering the jungle, or the pioneer. I used to run an investment fund, so I’m a typical investment banker I would say, I like profitability.”
Bitcoin is trading for $102,547 at time of writing.
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