Czech Central Bank Head Wants To Bet Country’s Billions on Bitcoin

Key Takeaways

• Czech National Bank chief Aleš Michl proposes allocating 5% of reserves to Bitcoin.
• The Czech Republic joins a growing list of nations considering a strategic Bitcoin reserve.
• Bitcoin’s volatility is becoming less of a deterrent as institutional adoption rises.

The Czech Republic has joined a growing list of nations considering Bitcoin (BTC) as part of their national reserves.

Aleš Michl, governor of the Czech National Bank (CNB), plans to present a proposal on Jan. 30 to allocate 5% of the country’s public funds to Bitcoin.

Czech Republic Eyes Bitcoin as a Strategic Asset

In an interview with the Financial Times, Michl acknowledged Bitcoin’s volatility but pointed to increasing institutional and government adoption as a compelling reason to invest.

He argued that Bitcoin has evolved into a legitimate diversifying asset and cited financial powerhouses like BlackRock, along with various governments, as indicators of its growing credibility.

The Czech central bank chief said his risk appetite sets him apart from other central bankers, citing his background as an investment banker. He added that Bitcoin presents a strong opportunity for “diversifying our assets.”

His comments come from multiple countries—including the  U.S .,  Brazil ,  Poland ,  Japan , and Russia —that are considering adding Bitcoin to their reserves.

Shifting Views on Bitcoin Volatility

For years, central banks have favored stable assets like gold , U.S. Treasury bonds , and fiat currencies, avoiding Bitcoin due to its price swings.

However, recent market disruptions have challenged the perception that traditional assets are inherently more stable.

Michl’s proposal reflects a broader trend of governments and financial institutions warming up to Bitcoin as a store of value.

While critics have long argued that Bitcoin’s volatility makes it unsuitable for national reserves, Michl suggested that the growing adoption by institutions and governments will help stabilize its price over time.

“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 said.

Publicly traded companies like MicroStrategy , SpaceX , and Tesla began holding Bitcoin in 2020, and despite market downturns in 2022-23, their investments have largely paid off.

Investor confidence in Bitcoin as a treasury asset has continued to grow, bolstered by increasing regulatory clarity and mainstream financial integration.