The Czech National Bank (CNB) is exploring the possibility of storing billions of dollars worth of bitcoin in its reserves, according to a report by the Financial Times.

The move would make it the first central bank in Europe to hold assets in cryptocurrency.
In an interview with the newspaper, the bank’s governor Aleš Michl said that he would present the plan to the CNB’s board framing as a way to diversify the bank’s resources.

Should the board approve the plan, the CNB could hold around five per cent of its €140 billion reserves in bitcoin.

Michl acknowledged the potential volatility of cryptocurrencies but highlighted the investor interest in bitcoin, with the launch of bitcoin exchange traded funds by BlackRock and other firms.

Additionally, Michl told the newspaper that US president Donald Trump has plans to deregulate cryptocurrency and evaluate the potential for the country to hold digital assets.

“For the diversification of our assets, bitcoin seems good,” Michl told the Financial Times. “Those [Trump] guys can now kind of create some bubble for bitcoin, but I think the trend would be an increase without those guys as well, because it’s an alternative [investment] for more people.”

Michl’s comments follow the news that a group of cryptocurrency advocates has launched an initiative that could require the Swiss National Bank (SNB) to hold bitcoin as part of its reserves.
The proposal aims to modify existing legislation to mandate that the central bank maintain reserves in both gold and bitcoin.

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