Czech National Bank governor Aleš Michl is considering investing in Bitcoin as part of a potential diversification strategy for the country’s foreign exchange reserves.
Michl said in an interview with CNN Prima News that he is considering acquiring “a few Bitcoin.”
No Plans In Place Yet For The Czech National Bank To Buy Bitcoin
Before the national bank can start buying BTC, it will need to get the approval from its board, which comprises seven members. Janis Aliapulios, one of the advisors to the board, confirmed that the bank is not currently planning a Bitcoin investment when he was asked about a potential acquisition.
Nevertheless, Michl is still open to the idea of the bank diversifying its portfolio through BTC. Until this happens, the bank will continue to invest in gold as part of its current diversification plan. Aliapulios said that the bank aims to increase its holdings in the popular commodity to around 5% of its total assets by 2028.
BTC Could Become A “Safe” Reserve Asset
Michl’s remarks come amid a shift among institutions and governments, who are evaluating whether BTC could be included in their financial strategies, according to author and intergovernmental blockchain expert Anndy Lian.
Lian says there could be a “gradual redefinition of what constitutes a ‘safe’ reserve asset” as more governments and institutions mull an investment in BTC.
In the past, gold has been the go-to asset for portfolio preservation. Looking at the last year, however, Bitcoin has risen more than 131% while gold’s price only climbed 30%, according to TradingView data.
One deterrent is BTC’s high levels of volatility. Lian warned that BTC’s fluctuations could be a “double-edged sword” for national reserves that could lead to broader financial swings.
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
