Czech National Bank Considers Bitcoin for Reserve Diversification

The Governor of the Czech National Bank (CNB), Aleš Michl, revealed that the central bank is considering adding Bitcoin (BTC) to its reserves as part of its diversification strategy. During a January 6 interview with CNN Prima News, Michl discussed the importance of diversifying the bank’s holdings across stocks, bonds, gold, and cash deposits.

“Bitcoin is a very, very interesting thing, but no one knows exactly if what we are reading is true because none of us has seen the Bitcoin code. If that’s the case, that’s the way it is, it’s very interesting as diversification against other assets,” Michl said.

Czech National Bank is considering adding “just a few” BTC to its reserves, but Michl emphasized there are no plans for a substantial investment, stating that the bank's gold holdings would provide sufficient diversification. As part of its broader foreign currency diversification strategy, the CNB aims to hold 100 tons of gold within four years.

Michl noted that the possibility of adding Bitcoin to the bank’s roadmap remains under discussion among the CNB’s seven board members.

This isn’t the first time Michl has spoken positively about Bitcoin. In January 2022, he led an educational session at a Czech elementary school, introducing students to financial concepts. When asked whether Bitcoin could be the currency of the future, he responded:

“Bitcoin is an interesting concept, but before buying any investment, we must always consider the worst-case scenario for our money. It’s important to understand the basic principles and know how to find essential information. Just spend less time on Netflix and dedicate a bit more time to learning. It’s not rocket science.”

On December 6, 2024, the Czech Republic passed legislation providing income tax exemptions for certain crypto transactions. Individuals can claim an exemption if their total gross annual income from crypto transfers does not exceed CZK 100,000 (approximately $4,100) or if they held digital assets for more than three years before selling them.