Czech Republic May Be First in Western Europe to Hold Bitcoin Reserves

The Czech Republic is seriously considering adding Bitcoin to its national reserves, joining a growing list of countries looking at crypto as a strategic asset. Czech National Bank (CNB) Governor Aleš Michl is set to pitch the idea of putting up to 5% of the country’s reserves into Bitcoin at a board meeting on January 30.

This comes after the U.S. has been making waves with discussions about holding Bitcoin as part of its strategic assets. Binance co-founder Changpeng “CZ” Zhao recently hinted that a U.S. Bitcoin reserve is “pretty much confirmed,” adding fuel to the speculation that other nations might follow suit. (More on that here)

Right now, the Czech Republic has about $146 billion in foreign reserves. If Michl’s plan gets the green light, that could mean a Bitcoin buy worth over $7 billion – a pretty big deal for the country’s financial strategy. While Bitcoin’s volatility is a factor, Michl believes its growing adoption by institutions and governments makes it a strong option for diversification.

This potential move fits into the CNB’s larger strategy of diversifying its assets, including boosting gold reserves to 5% of total holdings by 2028. If approved, the Czech Republic would be one of the first European central banks to embrace Bitcoin seriously.

The plan still needs approval from the CNB’s seven-member board, so nothing is set in stone yet. But with big economies like the U.S. reportedly getting serious about Bitcoin reserves, it looks like more countries, including the Czech Republic, are starting to take the idea seriously.