The Czech central bank is reviewing a Bitcoin reserve plan that may take months, with potential exposure set to be well below the originally suggested, sources say.
The Czech central bankโs Bitcoin (BTC) adoption plan may take months to finalize, with exposure expected to be much lower than the initially suggested 5%.
Governor Ales Michl first floated the idea in an interview with the Financial Times. The proposal sparked excitement in the crypto space but faced skepticism from policymakers. European Central Bank President Christine Lagarde dismissed it, saying that โreserves have to be liquid, that reserves have to be secure, that they have to be safe.โ
Following Michlโs proposal, the Czech National Bankโs board commissioned a study, which will assess Bitcoinโs feasibility as a reserve asset. The governor is open to its conclusions, even if they dismiss the idea. However, Bloombergโs sources now say the study may take months to complete. Moreover, even if the study supports Bitcoin purchases, the sources say the CNBโs exposure would be under 1% of total reserves, far from the initially reported โup to 5%.โ
Michl admitted Bitcoinโs value could go to zero but also sees its potential as CNBโs data suggests that if 5% of its reserves had been in Bitcoin over the past decade, annual returns would have risen by 3.5% points โ but volatility would have doubled. If the plan moves forward, CNB could become the first Western central bank known to hold Bitcoin, joining El Salvador, which holds 6,048 BTC worth about $619 million, perย dataย from Bitcoin Treasuries.
