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Czech Central Bank chief is open to Bitcoin: Will there be a Reserve?

Ales Michl, chief of the Czech central bank CNB, is calling on other central bankers to study Bitcoin.

By Mike Hesp
• 2 min read
Czech Central Bank chief is open to Bitcoin: Will there be a Reserve?

Ales Michl, chief of the Czech central bank CNB, is calling on other central bankers to study Bitcoin. "Studying Bitcoin will not hurt us - on the contrary, it will strengthen us," the 47-year-old writes in a post on the social media platform X.

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At a meeting of his bank on Jan. 30, Michl proposed exploring the possibility of setting up a Bitcoin reserve in the Czech Republic. The board agreed. The plan would allow up to 5 percent of all CNB reserves to be held in BTC. This plan is currently under investigation.

Currently, the central bank has US$146 billion in reserves. Bitcoin could therefore represent an equivalent of US$7.3 billion.

A warning about this plan, however, came from Frankfurt am Main. Christine Lagarde, the president of the European Central Bank, was skeptical of the idea of such a reserve.

Michl acknowledges that Bitcoin is a "highly volatile" asset and believes its value can only go in two directions - "either to zero or to a very high amount."

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