Emily Walker
Recently, Governor Aleš Michl of the Czech National Bank (CNB) appeared on CNN Prima News’ Partie Terezie Tománková, where he discussed the bank’s monetary policy, its increasing gold reserves, and the potential for Bitcoin investments. This interview, initially reported by Seznam Zprávy, provided a rare insight into the CNB’s strategies regarding foreign exchange reserves and Michl’s personal views on Bitcoin.
Will the Czech Central Bank Consider Bitcoin?
Michl expressed his doubts about the Czech Republic adopting the euro, arguing that joining the eurozone wouldn’t address the nation’s economic issues. He stated, “The euro is no salvation,” emphasizing that the CNB sees minimal strategic benefit in giving up the Czech Koruna.
He elaborated on the CNB’s efforts to enhance and diversify its foreign exchange reserves. In recent years, the bank has significantly increased its gold reserves from eight tonnes to fifty tonnes and aims to grow this amount even further.
Michl detailed the bank’s plans, saying, “We’ll reach 100 tons […] in about three and a half years, marking a historic achievement for the Czech Republic.” He highlighted that the CNB’s risk management strategy involves spreading reserves across different types of assets: “We manage foreign exchange reserves and must invest wisely to ensure diversification among those asset classes.”
While gold is a key component of the CNB’s reserve policy, the topic of Bitcoin also came up. When asked if the CNB had looked into Bitcoin investments, Michl pointed out that this question often arises in political discussions, particularly among younger generations.
He revealed, “Yes, Bitcoin has crossed my mind.” However, he stressed that it has not been formally adopted as a policy: “I considered Bitcoin, but fortunately, there are seven of us on the board, and I believe gold will suffice for now. We can continue discussing it.”
Michl emphasized that the central bank’s main focus is on maintaining “low inflation and financial stability,” which makes a large-scale investment in Bitcoin unlikely in the short term. Yet, he recognized Bitcoin’s potential as a diversification tool within a portfolio, describing it as “a very interesting consideration […] for balancing other assets.”
He noted that if the bank were to purchase Bitcoin, it would be a minimal investment compared to their ongoing gold accumulation. “I thought about acquiring just a few bitcoins; I didn’t intend to make a substantial investment in it as we still prioritize gold,” Michl stated.
As of now, the price of BTC is $100,921.