In a recent appearance on CNN Prima News’ Partie Terezie Tománková, Governor of the Czech National Bank (CNB) Aleš Michl discussed the institution’s monetary stance, its growing gold reserves, and the possibility of investing in Bitcoin. The interview, originally reported by local media outlet Seznam Zprávy, offered an unusually candid glimpse into the central bank’s strategy for foreign exchange reserves and the governor’s personal thoughts on BTC.
Will Czech’s Central Bank Buy Bitcoin?
Michl began by reaffirming his skepticism toward the Czech Republic’s adoption of the euro, emphasizing that joining the single currency would not solve the country’s economic challenges. “The euro is no salvation,” he stated, underscoring that the CNB currently perceives limited strategic advantage in relinquishing the Czech Koruna.
In addition to discussing the euro, Michl spoke at length about the CNB’s ambitions to strengthen and diversify its foreign exchange reserves. Over the past few years, the bank has sharply increased its gold holdings, going from eight tonnes to the current fifty tonnes, and has plans to expand further.
The governor provided specific details on the timeline, saying, “We’ll have 100 tons […] we’ll make it in about 3 and a half years and we’ll have the most in the history of the Czech Republic.” He stressed that the CNB’s method of risk mitigation hinges on distributing reserves across various asset classes: “We have foreign exchange reserves and we need to invest them well, diversify […] so that between each other, those asset classes are diversified.”
While gold remains the cornerstone of the CNB’s reserve policy, Michl also addressed the growing conversation around Bitcoin. Responding to a direct question about whether the CNB had ever considered placing funds into Bitcoin, he acknowledged that this is a question which “often permeates political discussion especially from young people.”
He revealed, “Yes, I had Bitcoin in my mind.” However, he was quick to clarify that such a notion has not been adopted as formal policy: “I was considering Bitcoin […] but luckily there are seven of us on the board and I think the gold will be enough for now. But we can keep debating it.”
Michl explained that the central bank’s priority remains “low inflation [and] financial stability,” making a large-scale foray into Bitcoin unlikely in the near term. Still, he acknowledged Bitcoin’s allure as a potential hedge in a diversified portfolio, describing it as “a very interesting thing […] as a diversification against other assets.”
He underscored that any potential Bitcoin purchase under consideration would be small, especially compared to the CNB’s ongoing accumulation of gold. “I was thinking of buying just a few bitcoins. I didn’t mean to invest massively in it while we’re still on gold,” Michl explained.
At press time, BTC traded at $100,921.
Featured image created with DALL.E, chart from TradingView.com
