Recently appearance On CNN Prima News, Czech National Bank (CNB) Governor Ales Michal discusses the institution’s monetary stance, its growing gold reserves, and the possibility of investing in Bitcoin. The interview, actually Reported By local media outlet Seznam Zaprevi, an unusually candid look into the central bank’s strategy for foreign exchange reserves and the governor’s personal views on BTC.
Will Czech Central Bank Buy Bitcoin?
Michal reaffirmed his skepticism about the Czech Republic’s adoption of the euro, stressing that joining the single currency would not solve the country’s economic challenges. “The euro There is no salvation,” he said, stressing that the CNB currently sees limited strategic benefit in abandoning the Czech koruna.
In addition to discussing the euro, Michal spoke at length about the CNB’s ambitions to strengthen and diversify its foreign exchange reserves. The bank has grown rapidly in the last few years the gold Holdings, going from eight tonnes to the current 50 tonnes, and plans to expand further.
The governor, while providing specific details on the timeline, said, “We will have 100 tonnes […] We will make it in about 3 and a half years and we will have the most in the history of the Czech Republic.” He emphasized that the CNB’s method of risk reduction relies on allocating reserves to different asset classes: “We have foreign exchange reserves and we need to invest them well, diversify them. […] So that between each other, those asset classes are diversified.
While gold remains the cornerstone of the CNB’s reserve policy, Michal also addressed the growing conversation around Bitcoin. In response to a direct question about whether the CNB had ever considered holding funds in bitcoin, he admitted that it was a question that “often comes up in political discussions, especially from young people”.
“Yes, I had Bitcoin on my mind,” he revealed. However, he was quick to clarify that such a concept has not been adopted as formal policy: “I was considering Bitcoin. […] But luckily there are seven of us on board and I think gold will be enough for now. But we can continue to debate this.
Michal explained that the central bank’s priority remains “Low inflation [and] Financial stability, “is unlikely to see a large-scale foray into bitcoin in the near term.” Still, he acknowledged the allure of bitcoin as a potential hedge in a diversified portfolio, calling it “a very interesting thing.” described […] As a diversification against other assets.
He stressed that any potential bitcoin purchase under consideration would be small, especially compared to CNB’s ongoing gold holdings. “I was thinking of buying some bitcoins. I didn’t mean to invest heavily in it while we’re still on gold,” Mikal explained.
At press time, BTC traded at $100,921.
Featured image created with DALL.E, chart from TradingView.com
