The Czech National Bank (CNB) could become the first Western central bank known to allocate a portion of its reserves to Bitcoin (CRYPTO: BTC).
What Happened: Governor Aleš Michl, breaking from traditional financial dogma, plans to present a bold proposal at this Thursday’s board meeting to invest billions of euros into the digital asset, according to the Financial Times.
Should his plan be approved, the CNB could allocate as much as 5% of its substantial €140 billion ($145 billion) reserves to Bitcoin, signifying a radical departure from conventional reserve strategies.
Michl, who is a former investment banker, acknowledged Bitcoin’s notorious “extreme volatility,” but highlighted the recent surge in broader investor interest, including the new Bitcoin exchange-traded funds launched by major financial firms like BlackRock.
He further mentioned Donald Trump‘s public statements on deregulation and his administration’s increasing embrace of cryptocurrencies as contributing factors to the bank’s interest.
In addition, Trump’s recent executive order to explore a national digital asset stockpile further supported the CNB’s decision-making process.
“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 …
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