Prague/Frankfurt – The Czech National Bank (CNB) has announced plans to analyze potential investments in new asset classes. This decision was made during the bank board’s meeting today. CNB Governor Aleš Michl recently discussed the possibility of adding bitcoin to the central bank’s foreign exchange reserves. In a press release issued today, the bank emphasized that there will be no changes to the foreign exchange reserves until the analysis results are reviewed. In a related note, European Central Bank (ECB) President Christine Lagarde asserted during a press conference on Thursday that she believes no EU country will include bitcoin in its reserves.
The CNB stated, “Over the past two years, the central bank has enhanced the diversification of its investments as part of its foreign exchange reserves management strategy. At Governor Aleš Michl‘s suggestion, the CNB will evaluate whether expanding reserves to include additional asset classes would be beneficial from a diversification and yield perspective.” The bank has not provided a timeline for when the analysis will be completed. In a Wednesday interview with the Financial Times, Michl indicated that he plans to present a bitcoin investment proposal to the bank board. If approved, bitcoin could constitute up to five percent of the bank’s reserves, currently totaling 140 billion euros (3.5 trillion CZK).
Lagarde emphasized to reporters that reserves should be liquid and safe, avoiding any associations with money laundering or criminal activities. She mentioned her discussions with Michl, stating, “I have talked with my colleague from the Czech Republic and trust him to make his own statements.” She added, “However, I am confident that he, like all of us, understands the importance of maintaining liquid and secure reserves.” Following this, CNB’s Director of Communications Jakub Holas informed ČTK that the bank would refrain from commenting on Lagarde’s remarks.
In response to Michl’s proposal, analysts have highlighted that bitcoin represents a high-risk asset, which could raise concerns if integrated into reserves. They also noted that this move might put the CNB at odds with the ECB, which regards bitcoin as having no intrinsic value. Nevertheless, the CNB’s actions could contribute to bitcoin’s acceptance as a mainstream investment asset. Finance Minister Zbyněk Stanjura (ODS) expressed caution regarding bitcoin’s potential inclusion in foreign exchange reserves, stating today that the central bank should embody stability, which bitcoin does not guarantee. However, he emphasized that the final decision rests with the CNB board. (January 30th)
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