The prospect of a European central bank incorporating Bitcoin reserves has gained traction, despite recent dismissals of the cryptocurrency by European Central Bank President Christine Lagarde.
The Czech National Bank has launched a study to explore the potential of Bitcoin (BTC) as a reserve asset following a proposal by CNB Governor Aleš Michl.
Michl previously advocated for diversifying the bank’s investment portfolio to include alternative asset classes like Bitcoin. His proposal included the possibility of allocating a portion of the CNB’s €140 billion ($145.6 billion) reserves to BTC. “Based on the results of the analysis, the Bank Board will then decide how to proceed further,” stated the CNB in a recent announcement regarding Michl’s proposal.
While support for Michl’s initiative is growing within the CNB, the ECB President remains skeptical. As the CNB approved the study, Lagarde expressed confidence that no EU central bank would incorporate Bitcoin as a reserve asset.
Interestingly, although the Czech Republic is a member of the EU, it has not adopted the euro as its official currency.
The trend of national and institutional Bitcoin reserves is gaining momentum across Europe and the globe. In the United States, efforts are underway at the federal level to establish a strategic Bitcoin reserve, with several legislators advocating for this shift.
Additionally, nearly a dozen U.S. states have introduced legislation aimed at allowing the purchase of Bitcoin with taxpayer funds, indicating a growing interest in the cryptocurrency as a legitimate asset.
