Aleš Michl, Governor of the Czech National Bank (CNB), has sparked discussions about the potential inclusion of Bitcoin in the bank’s foreign exchange reserves as part of its diversification strategy.
In a recent interview with CNN Prima News, Michl expressed an openness to Bitcoin as a potential diversification tool. However, any investment would require the approval of the Czech National Bank’s board. He mentioned considering a modest purchase of Bitcoins but emphasized it wouldn’t be a significant investment. However, adviser Janis Aliapulios clarified that the bank has no plans to invest in Bitcoin. Instead, the focus is increasing gold reserves to 5% of total assets by 2028.
During the interview, Michl expressed an optimistic outlook for the Czech economy in 2025, predicting low inflation and financial stability. He estimates inflation will decrease to about 2.5% by year-end, moving towards a long-term target of 1.9% to 2%, reflecting a dramatic change from the 17.5% inflation rate when he took office in July 2022.
Notably, the Czech economy’s growth forecast has been lowered from 2.7% to 2%. Michl emphasizes that household consumption and entrepreneurship should be the main drivers rather than increased government borrowing. He advocates for reducing the civil service workforce, calling it overcrowded while suggesting sensible wage increases and streamlining operations within ministries. The CNB is reducing its directors from 17 to 14 and conducting internal audits to improve efficiency.
Meanwhile, former German finance minister Christian Lindner suggested that the European Central Bank and Germany’s Bundesbank consider adding Bitcoin to their reserves. He referred to the Trump administration’s approach to cryptocurrencies as “extremely progressive” and noted the U.S. ambition to become a leading crypto hub. Lindner mentioned that discussions in Washington included the potential for the American central bank to include crypto assets in its reserves alongside traditional currencies and gold.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
