To set realistic expectations regarding the Czech Bitcoin reserve, let’s summarize a few key points.
Aleš Michl, the governor of the Czech National Bank (ČNB), is a former investment banker. This background may have influenced his willingness to incorporate more modern and bold assets into the ČNB's portfolio.
However, it wasn’t long ago that Michl expressed doubts about Bitcoin’s fixed supply of 21 million coins, stating that he hadn’t read the code. Apparently, someone must have shown it to him, considering that just six months later, he’s now suggesting that the ČNB could allocate up to 5% of its reserves to Bitcoin.
This would amount to approximately €7.3 billion, which, incidentally, would surpass the country’s gold reserves—currently at around 3% of total reserves, or €4.3 billion.
At the current exchange rate, we are talking about acquiring roughly 70,000 BTC, making it one of the largest state-held Bitcoin positions globally.
That said, I want to temper expectations. The banking mainstream — not just central banks — still fundamentally misunderstands Bitcoin. Following the European Central Bank’s guidance, many still classify it as a speculative asset. Bankers frequently compare Bitcoin to the Dutch tulip mania, arguing that its intrinsic value is zero. Former ČNB governor Jiří Rusnok even joked that instead of Bitcoin, the country should establish a strategic reserve of vintage wines — claiming it would be a lot less risky investment.
By the way, just like the U.S. Federal Reserve, the ČNB is independent of the state and finances its operations through returns on its reserves. Therefore, complaints from taxpayers that this constitutes 'gambling with public money' are unfounded. Very simply put, Michl and the bank board do not have to take public and/or state opinion into account when making such decisions.
As I’ve mentioned before, public sentiment is largely against Bitcoin—various surveys have shown that around 70% oppose such Bitcoin reserve. This skepticism extends to the expert community, including both national and commercial bankers.
Moreover, at this stage, the proposal is merely in the "let’s explore this" phase—similar to how the U.S. Treasury’s crypto task force is still studying potential implications.
Regardless of how the voting unfolds, it would be premature to assume that the Czech central bank will start purchasing Bitcoin anytime soon. It is likely to be a long and complex process. Personally, I believe Michl will find himself largely alone in this push and will ultimately be outvoted.
Nevertheless, I appreciate that someone had the courage to bring this discussion into the public sphere, which has traditionally been quite hostile toward Bitcoin.
We're still too early.
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