In a tweet on Twitter / X, the Czech central bank governor Aleš Michl explains his thoughts on potentially adding Bitcoin to the country's official currency reserves.
It was yesterday that an article in the Financial Times reported that Czech National Bank Governor Aleš Michl was planning to make the Czech Republic the first EU country to include bitcoin in its official reserves.
In a post on X / Twitter, Michl explained his thoughts further. We reproduce Michl's entire tweet below:
'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 consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio. Worth considering. Right now, it's only at the stage of analysis and discussion. The Bank Board decides, and no decision is imminent. Thoughtful analysis is needed.
Bitcoin has significant volatility, which makes it harder to take advantage of its current low correlation with other assets. That's why I will ask our team on Thursday to further assess Bitcoin's potential role in our reserves. Nothing more, nothing less.'
Some people have also questioned the credibility of the article in Financial Times. Here Michl says: 'The article is very accurate, including my statement that Bitcoin could one day be worth either zero or a huge amount. I highly recommend reading the full piece.
In a tweet on Twitter / X, the Czech central bank governor Aleš Michl explains his thoughts on potentially adding Bitcoin to the country's official currency reserves.
It was yesterday that an article in the Financial Times reported that Czech National Bank Governor Aleš Michl was planning to make the Czech Republic the first EU country to include bitcoin in its official reserves.
In a post on X / Twitter, Michl explained his thoughts further. We reproduce Michl's entire tweet below:
'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 consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio. Worth considering. Right now, it's only at the stage of analysis and discussion. The Bank Board decides, and no decision is imminent. Thoughtful analysis is needed.
Bitcoin has significant volatility, which makes it harder to take advantage of its current low correlation with other assets. That's why I will ask our team on Thursday to further assess Bitcoin's potential role in our reserves. Nothing more, nothing less.'
Some people have also questioned the credibility of the article in Financial Times. Here Michl says: 'The article is very accurate, including my statement that Bitcoin could one day be worth either zero or a huge amount. I highly recommend reading the full piece.
