Czech National Bank Governor Ales Michl said that he will present a plan to the central bank’s board to invest in bitcoin and added that it was “very likely” the bank would cut interest rates by 25 basis points next week, according to an interview published by the Financial Times on Wednesday.
Michl said he will present the plan to the board on Thursday, and if approved, the bank could eventually hold as much as 5 per cent of its 140 billion euro ($146.13 billion) reserves in bitcoin, according to the FT.
“For the diversification of our assets, bitcoin seems good,” he said.
He added that bitcoin would trend higher even without the backing of U.S. President Donald Trump since it’s an alternative investment for many people.
Bitcoin hit a record high earlier this month when Trump, who has pledged to be a “crypto president,” was sworn in.
It has more than doubled in value in 2024, driven by the U.S. market regulator’s approval for exchange-traded funds tied to its spot price, and optimism over easing regulatory hurdles under Trump.
Michl, too, highlighted wider investor interest in bitcoin since BlackRock and other firms last year launched bitcoin exchange traded funds, according to the FT.
($1 = 0.9580 euros)
