The governor of the Czech National Bank (CNB) proposed the idea of investing in Bitcoin to diversify the bank’s portfolio.
The Czech National Bank (CNB) is the central bank of the Czech Republic, a landlocked country located in Central Europe. The central bank of this country plays a vital role in the monetary and financial system of the country such as monetary policy, currency issuance, financial supervision, foreign reserves and exchange rates, economic research and data collection .
On January 7, 2025, Aleš Michl, governor of the Czech National Bank (CNB), said that he planned to adopt Bitcoin as an investment asset to diversify the national bank’s portfolio.
The central bank governor noted that other countries’ interest in Bitcoin is continually increasing and this is one reason why this technology-focused asset should be part of the country’s foreign exchange reserves.
In this case, we must know that the Bank’s board of directors is made up of seven members and the majority of them would have to support this decision to adopt the Bitcoin investment plan.
Janis Aliapulios, advisor to the board, clarified in a statement with popular cryptocurrency news website Cointelegraph, that the central bank has no plans to consider investing in Bitcoin.
The head of the central bank also confirmed that Governor Michl does not rule out new debates on this issue in the future, which is an indication that the entire debate is going by surprise.
For now, the central bank has a solid plan to increase gold reserves by 5% of the total amount of reserves by 2028.
Crypto population and GDP of the Czech Republic
According to the latest data, the total population of this country is 10,736,116, and for the entire year 2024, the GDP is projected to be around $342.99 billion, which is also impressive.
According to the data, almost 12% of the citizens of this country invest in cryptocurrencies, which means that 1.28 million people are involved in cryptocurrency investments.
Over the past year, the rate of cryptocurrency adoption has increased in this country as regulatory bodies implemented new rules dedicated to cryptocurrencies, prohibiting the misuse of cryptocurrencies and providing a friendly environment for investors.
Recently, the Income Tax authority introduced a new law to provide tax exemptions to long-term cryptocurrency investors. According to the new law, if a person owns a crypto asset for more than 3 years, the income from its sale is tax-free up to a limit of $1.8 million.
Also Read: Canada Moves Towards Next Level of Bitcoin Adoption: Is Pierre Poilievre Emerging as the Next Nayib Bukele?
