Ales Michl, the Governor of the Czech National Bank, announced that he will propose a plan to the central bank’s board to invest in bitcoin. He indicated that it is “very likely” the bank will reduce interest rates by 25 basis points next week. This information comes from an interview published by the Financial Times on Wednesday.
Michl plans to present the investment proposal to the board on Thursday. If the board approves it, the bank could eventually allocate up to 5% of its 140 billion euro ($146.13 billion) reserves to bitcoin, according to the FT.
He stated, “For the diversification of our assets, bitcoin seems good.”
Michl also noted that bitcoin is likely to trend higher, even without support from the U.S. President Donald Trump. He believes it serves as an alternative investment for many people.
Earlier this month, bitcoin reached a record high when Trump, who has declared his intention to be a “crypto president,” took office.
In 2024, bitcoin’s value has more than doubled. This surge is driven by the U.S. market regulator’s approval of exchange-traded funds linked to its spot price and growing optimism about easing regulatory challenges under Trump’s administration.
Michl emphasized the increased interest in bitcoin from investors since BlackRock and other firms launched bitcoin exchange-traded funds last year, according to the FT.
Click here for more Banking news.