Czech National Bank Governor Ales Michl told the Financial Times on Wednesday that he intends to present the board with a plan to invest billions of euros of the country's reserves in bitcoin to diversify the bank's reserves.
"For the diversification of our assets, bitcoin seems good," Michl stated, although he acknowledged the "extreme volatility" of the most valuable cryptocurrency. However, he emphasized that investor appetite for bitcoin has been growing after BlackRock and other companies launched exchange traded funds (ETFs). He further explained that, if the board approves the plan, the Czech central bank could hold as much as 5% of its reserves in bitcoin.
"Of course, if you compare my position with other bankers, then I'm the one entering the jungle, or the pioneer," Michl stated. "I used to run an investment fund, so I'm a typical investment banker I would say, I like profitability," he noted, adding that he hopes other central bankers will follow his example.
