Czech National Bank (CNB) Governor Aleš Michl has urged central bankers to study Bitcoin, emphasizing that it should not be grouped with other digital assets.
In a Feb. 19 post on X, Michl stated that central banks should examine Bitcoin and its underlying technology rather than dismissing it alongside other digital assets.
According to him, studying Bitcoin will not weaken central banks but instead strengthen them by providing a deeper understanding of its potential impact on monetary systems.
He compared the current state of the crypto market to the Czech Republic’s transition from socialism to capitalism in the 1990s. Numerous investment funds emerged during that period, but many collapsed due to market shifts.
Michl believes the crypto industry will undergo similar cycles, making investor education and risk assessment crucial. He said:
“Bitcoin, however, is a different story. It should not be lumped together with other crypto assets. We central bankers should study it and explore the technology it is built on. Studying bitcoin won’t harm us—on the contrary, it will strengthen us.”
His remarks come amid reports that the European Central Bank (ECB) may reconsider its stance on national banks holding Bitcoin in their reserves.
Bitcoin reserve proposal
In the X post, Michl also provided an update about the Czech National Bank’s ongoing evaluation of expanding its investment portfolio to include Bitcoin.
According to him, the CNB’s board has approved a proposal to analyze Bitcoin investment options. However, he clarified that this does not mean immediate adoption. The board will conduct a thorough assessment before making a final decision.
He stated:
“The Bank Board approved a proposal to analyse the options for investing in additional asset classes. Based on the results of the analysis, the Bank Board will then decide how to proceed further. No changes will be implemented in this area until then.”
Meanwhile, Michl emphasized that he told the CNB board that:
“Bitcoin is highly volatile and could one day be worth one of two extremes – either zero or a huge amount. I also stressed that bitcoin is a high-risk asset for professional investors who are aware of all the risks.”
Nonetheless, he wants the apex bank to explore Bitcoin as part of a broader strategy to diversify its reserves.
Michl noted:
“This step is motivated by a desire to learn about and try out this highly risky alternative asset. I emphasised the need to adapt to changing conditions in the financial markets and to explore new reserve management options.”
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