After the Czech National Bank (CNB) has approved a proposal to analyze the options for investing part of its reserves in Bitcoin (BTC), Governor Aleš Michl attracted mixed answers. With around € 7 billion at stake, that is the 5 percent of the international reserves of the CNB that are probably invested in Bitcoin, various reactions arose from different sectors led by colleague -centrale bankers from the European countries.
For example, the European President of the European Central Bank has rejected Christine Lagarde the idea of central banks in the block that Bitcoin has adopted as a strategic reserve. Lagarde recently noted that Bitcoin does not meet all fixed criteria for an active one to be included in the reserve of a bank.
Moreover, Michl has admitted that Bitcoin is extremely volatile and that the value could be zero or a very large number in a day.
“Of course, if you compare my position with other bankers, then I am the one who enters the jungle or the pioneer. I used to run an investment fund, so I am a typical investment banker, I would say, I love profitability, “Michl noted.
However, the Crypto community has defended the Czech National Bank to hire Bitcoin as a strategic reserve.
The rhythm change
The Donald Trump government has caused a potential revolution for the United States by using emerging technology led by blockchain and artificial intelligence. There have already been a bill in the United States to diversify their reserves in Bitcoin, making the federal government in front.
The mainstream acceptance of Bitcoin by institutional investors has convinced more global central banks to consider digital assets in the near future.
Moreover, El Salvador has made considerable progress with his Bitcoin strategy despite the headwind caused by the IMF.