Bitcoin Reserve: Will the Czech Republic Take the Leap?

The Czech Republic is at a crossroads of economic paths. While central banks around the world scrutinize future assets, the governor of the Czech National Bank, Aleš Michl, has proposed exploring the addition of Bitcoin to the country’s reserves. An initiative that raises eyebrows at the Ministry of Finance, which fears that the volatility of the flagship crypto may jeopardize monetary stability. However, the Czech Republic wants to diversify its holdings, even if it means shaking up the euro.

Bitcoin: is it too volatile a reserve for the Czech Republic?

Aleš Michl has thrown a stone into the water by suggesting the integration of Bitcoin into the country’s coffers. A risky bet according to Finance Minister Zbynek Stanjura, who fears the unpredictability of the asset.

“The central bank must embody stability. Now, look at the Bitcoin curve… it’s a roller coaster!”, he said.

Czech National Bank’s goal is price stability. When we took office in July 2022, inflation was 17.5%. We brought it down to target. We are also diversifying reserves—gradually increasing gold holdings from 0% to around 5% and planning for 30% in equities. An asset under… https://t.co/Au7fwJVHEU

— Aleš Michl (@MICHLiq_) January 29, 2025

This debate was settled during the council meeting on January 30. Rather than immediately adopting BTC, the Czech National Bank decided to explore other asset classes, without explicitly naming Bitcoin.

Yet, Michl gives nothing up. On X, he reminds that the Czech Republic is already increasing its gold reserve from 0 to 5% and aims for 30% in stocks. For him, BTC deserves at least a thorough analysis.

On the side of Czech industry players in the sector, they applaud the governor’s boldness. The Czech Republic has a long history with Bitcoin: first mining pool, first hardware wallet, and one of the largest Bitcoin conferences in the world in Prague.

For these players, refusing the crypto treasure would be like turning their backs on a technology where the country has always been a pioneer.

The euro in focus: towards an inevitable diversification

If the Czech National Bank scans for new assets, it’s not only for the sake of adding spice to its reserves. Behind this desire for diversification lies a strategic distancing from the euro. The Czech Republic, while a member of the European Union, has always kept its crown currency and is reluctant to permanently tie itself to the single currency.

Énorme ! La République tchèque confirme officiellement qu’elle ne veut pas de l’euro, qu’elle veut garder sa monnaie nationale et la Banque Centrale du pays publie un rapport au vitriol contre la zone euro !
(cf : https://t.co/p6KAwGWDf2)

« Avenir incertain de la Zone »
« La… pic.twitter.com/BCYODWaPNd

— Florian Philippot (@f_philippot) January 8, 2024

Some figures help to understand the country’s interest in financial alternatives:

• Inflation in 2022: 17.5%;
• Gold reserves target: 5%;
• Stocks target: 30%;
• Current Bitcoin reserves: 0%.

Michl, cautious yet curious, insists:

“Bitcoin has a low correlation with bonds. It’s an interesting asset for a large portfolio. It’s still too early for a decision, but the assessment continues.”

It’s difficult to be more diplomatic, but the idea of a gradual entry of BTC into the Czech reserves remains on the table.

If Donald Trump highlighted the idea of a Bitcoin treasure, the Czech Republic proves that the interest in this option extends well beyond the United States. Across the 5 continents, the rush of governments towards BTC seems already underway. To be continued.