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The Czech National Bank may invest up to 5% of its reserves in Bitcoin, potentially acquiring $7.3 billion in BTC as part of its diversification strategy.
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The Czech National Bank (CNB) may become the first European central bank to invest in Bitcoin as part of its diversification strategy for the country’s foreign exchange reserves.
CNB Governor Aleš Michl is set to present his Bitcoin (BTC) acquisition plan to the bank’s board meeting on Jan. 30, he told the Financial Times.
If approved, the investment may amount to over $7.3 billion in Bitcoin purchases, given the CNB’s total reserves of more than $146 billion, according to André Dragosch, head of research at Bitwise.
Dragosch noted the significance of the proposal in a Jan. 29 post on X, writing:
“Just to put this into perspective: These BTC purchases alone would be equivalent to around 5.3 months of newly mined Bitcoin supply.”
International reserves, CNB. Source: André Dragosch
The news comes three weeks after Michl said he was looking at Bitcoin as a potential reserve asset and was considering acquiring “a few Bitcoin” for diversification.
Still, as of Jan. 7 the bank was not considering a Bitcoin investment, Janis Aliapulios, an adviser to the board, told Cointelegraph, adding that the bank planned to increase its gold holdings to 5% of its total assets by 2028.
Related: Nvidia slump and $100B crypto IPOs could fuel Bitcoin rally
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News
