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Czech Republic Explores Bitcoin Reserve

Czech Republic Explores Bitcoin Reserve

Cryptocurrency News

The Czech National Bank (CNB) Board has approved a proposal to explore diversifying its reserves with digital assets, including Bitcoin. This follows a proposal from CNB Governor Aleš Michl, although it faces opposition from Finance Minister Zbynek Stanjura who cites Bitcoin's volatility.

CNB Weighs Bitcoin for Reserves

A recent press release from the CNB indicates the bank will analyze the feasibility of adding various asset classes, with Bitcoin specifically mentioned. This decision, despite the Finance Minister's objections, suggests a potential path towards a Bitcoin reserve.

Finance Minister's Concerns

Finance Minister Zbynek Stanjura voiced concerns regarding Bitcoin's inherent volatility, arguing that it's unsuitable for a national reserve. He emphasized Bitcoin's instability, stating, "I personally have misgivings about it. The central bank should symbolize stability. If you look at bitcoin trading, it’s definitely not a stable asset."

Bitcoin Reserve Plans Unveiled

Governor Michl previously suggested a 5% allocation of the CNB's €140 billion reserves to Bitcoin. He referenced other countries' explorations of similar strategies, framing it as a potential game-changer.

US Bitcoin Reserve Debate

Senator Cynthia Lummis urged the US to follow suit, emphasizing the need for swift action on a Bitcoin reserve bill. While several US states have proposed or approved similar bills, a federal decision remains pending.

The Bitcoin Reserve Race

At least 14 US states have considered or approved Bitcoin reserve bills, but a national strategy remains uncertain. The Czech Republic's initiative faces internal opposition, making the outcome uncertain. The global race to incorporate cryptocurrency into national reserves is ongoing.

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