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The Czech National Bank may soon break new ground as the first European central bank to invest in Bitcoin suggesting a significant shift in monetary strategy. Governor Aleš Michl has announced plans to propose a substantial acquisition of Bitcoin worth up to $7.3 billion or 5% of the nation’s $146 billion reserves. This move aligns with the bank’s diversification efforts and seeks approval in a pivotal board meeting set for January 30.
According to André Dragosch head of research at Bitwise the proposed investment would consume approximately 5.3 months of the newly mined Bitcoin supply highlighting its scale and potential market impact. The announcement marks a stark turnaround from earlier this month when the bank expressed intentions to increase its gold reserves without considering Bitcoin.
Support for Bitcoin as a viable asset for the central bank’s large portfolio has grown even amidst calls for a thorough analysis before finalizing the decision. With its eye on diversification and the burgeoning potential of digital currencies the Czech National Bank could set a precedent for central banks across Europe.
