On Jan 29, Czech National Bank Governor Ales Michl stated in an interview with the Financial Times that he intends to propose a plan to invest in bitcoin to the central bank's board. Michl mentioned that there is a high probability that the bank will reduce interest rates by 25 basis points the following week.
Scheduled for presentation to the board on Thursday, Michl suggested that if approved, the bank could potentially allocate up to 5% of its 140 billion euro ($146.13 billion) reserves to bitcoin for the purpose of diversifying assets. He expressed, "For the diversification of our assets, bitcoin seems good."
Michl noted that bitcoin's upward trajectory is not solely reliant on U.S. President Donald Trump's endorsement but is appealing as an alternative investment to many individuals. The cryptocurrency surged to a new peak when Trump, advocating to be a "crypto president," assumed office.
Boosted by the approval of exchange-traded funds linked to its spot price by the U.S. market regulator and expectations of relaxed regulations during Trump's tenure, bitcoin has more than doubled in value in 2024.
Additionally, Michl referenced the heightened investor interest in bitcoin following the introduction of bitcoin exchange-traded funds by BlackRock and other companies last year, as reported by the Financial Times.
(1 euro equals $0.9580)