Czech Central Bank Explores Bitcoin Reserves

The Czech National Bank, led by Governor Ales Michl, is considering adding bitcoin to its reserves. This would mark the first move by a Western central bank into cryptocurrency. The decision requires further analysis and discussion, with no imminent resolution. Bitcoin's volatility poses significant challenges.

The Czech National Bank is contemplating holding bitcoin in its reserves, a potential pioneering move for a Western central bank, as disclosed by Governor Ales Michl. The concept remains under analysis, with no immediate decisions expected.

Michl has been spearheading diversification of the Czech central bank's substantial reserves, traditionally held in more conservative assets, into less conventional assets like equities. The consideration of bitcoin comes alongside forecasts of a 25 basis point interest rate cut next week.

Bitcoin's appeal has risen following its doubling in value in 2024 and initiatives by companies like BlackRock. However, skepticism prevails among several European and international entities, who view it as too volatile and risky for public reserves.

(With inputs from agencies.)