Key Takeaways:
- The Czech National Bank (CNB) is considering allocating up to 5% of its reserves (~$7.3B) to Bitcoin as part of its diversification strategy.
- If approved, the potential Bitcoin purchase would equal 5.3 months of newly mined BTC supply, per Bitwise research head André Dragosch.
- CNB Governor Aleš Michl will present the proposal on Jan. 30, though the bank has yet to commit and is also increasing gold reserves to 5% by 2028.
The Czech National Bank (CNB) is considering allocating up to 5% of its reserves—approximately $7.3 billion—to Bitcoin (BTC) as part of a diversification strategy.
CNB Governor Aleš Michl plans to present this proposal to the bank’s board on January 30.
Czech National Bank’s goal is price stability. When we took office in July 2022, inflation was 16-18%. We brought it down to target. We are also diversifying reserves—gradually increasing gold holdings from 0% to around 5% and planning for 30% in equities. An asset under… https://t.co/Au7fwJWfus
— Aleš Michl (@MICHLiq_) January 29, 2025
If approved, the CNB would become one of the largest institutional Bitcoin holders, given its total reserves exceeding $146 billion.
According to André Dragosch, head of research at Bitwise, such a purchase would equate to around 5.3 months of newly mined Bitcoin supply, potentially impacting the cryptocurrency market.
FOLLOW UP: Czech central bank holds around 146 bn USD in official reserve assets of which 138 bn USD are FX reserves and 4.3 bn USD are gold.
— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) January 29, 2025
They plan to invest up to 5% of these reserves into BTC (approximately 7.3 bn USD / ~71,568 BTC) pic.twitter.com/ph2VMtidQN
Michl’s proposal follows his previous comments on Bitcoin as a potential reserve asset, though the bank had not yet committed to an investment as of January 7.
Instead, the CNB had announced plans to increase its gold holdings to 5% of total assets by 2028.
While Michl acknowledges Bitcoin’s potential as a valuable asset in a large portfolio, he emphasized the need for thorough analysis before making a final decision.
The outcome of the board meeting will determine whether the CNB takes a historic step in integrating Bitcoin into its official reserves.
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