Czech National Bank Chief Aleš Michl proposed the country invest 5% of its 140 billion Euros reserve in Bitcoin as part of its diversification efforts.
The development confirms the Czech Republic as one of the countries looking to adopt a Bitcoin reserve using portions of their fund.
The Bank’s Chairman confirmed that the proposal will be drafted on January 30 and will mark the first significant step for the country in adopting a Bitcoin Reserve.
Speaking with Financial Times, Michi acknowledged the volatility of Bitcoin but highlighted the growing adoption of the assets by Corporations and jurisdictions as a compelling reason to hop on board.
Michi cited Financial giants like Blackrock and Countries like the United States looking to set up a Bitcoin reserve as evidence of the growing credibility of the asset.
He pointed out to his critics that his risk appetite sets him apart from other Central bank chiefs, recalling he started his career as an Investment Banker.
He strongly believes that Bitcoin presents a strong opportunity for the country to diversify its assets.
Huge Credibility Leap for Bitcoin over the Years
Over the years, Bitcoin has come a long way as a viable investment alternative. The major argument about the asset has focused on its volatility, stating that it is unfit for a national reserve.
The perception has largely changed over the years with various countries and corporate entities stockpiling the asset and arguing that the long-term benefit of investing in bitcoin by far outweighs the temporary volatility.
Bitcoin is fast becoming an industry favorite, with companies like Microstrategy driving adoption in the corporate world and countries like El Salvador and the United States driving adoption in jurisdictions.
Bitwise CIO Matt Hougan Believes the crypto asset could hit $500,000 a coin judging from the growing adoption and the performance of its Exchange Traded Funds.
