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After the Czech National Bank (CNB) board approved a proposal to analyze the options for investing a portion of its reserves in Bitcoin (BTC), Governor Aleš Michl has attracted mixed responses. With around €7 billion on the line, which is the 5 percent of the CNB’s international reserves likely to be invested in Bitcoin, different reactions have emerged from various sectors led by fellow central bankers from the European nations.
For instance, European Central Bank President Christine Lagarde has dismissed the idea of central banks in the bloc adopting Bitcoin as a strategic reserve asset. Lagarde recently noted that Bitcoin does not meet all the set criteria for an asset to be included in a bank’s reserve.
Moreover, Michl has admitted that Bitcoin is extremely volatile and its value could one day be zero or a very huge number.
“Of course, if you compare my position with other bankers, then I’m the one entering the jungle, or the pioneer. I used to run an investment fund, so I’m a typical investment banker, I would say, I like profitability,” Michl noted.
However, the crypto community has been championing the Czech National Bank to adopt Bitcoin as a strategic reserve asset.
The Rhythm Change
The Donald Trump administration has triggered a potential revolution for the United States through the use of emerging technology led by blockchain and artificial intelligence. Already, 22 states in the United States have introduced a bill to diversify their reserves in Bitcoin, thus front-running the federal government.
The mainstream adoption of Bitcoin by institutional investors has convinced more global central banks to consider digital assets in the near future.
Moreover, El Salvador has made significant strides with its Bitcoin strategy despite the headwinds caused by the IMF.