- Czech National Bank Governor Aleš Michl plans to allocate up to 5% of the bank’s €140 billion assets to Bitcoin, citing diversification benefits despite volatility risks.
- South Dakota has proposed legislation to create a strategic Bitcoin reserve, following North Dakota’s broader crypto initiative.
- Kentucky Representative TJ Roberts announces plans to introduce similar Bitcoin reserve legislation in the state’s General Assembly.
If the race to establish a crypto reserve (or in most cases, a Bitcoin reserve) was a literal race, you’d assume many haven’t heard the starting shot yet, while others are already heading toward the finishing line.
The latest to set their metaphorical horses on track for a reserve are the US States of South Dakota and Kentucky as well as the European state of Czechia.
Central Bank Chief Likes Profitability
According to reporting in the Financial Times, Czech National Bank Governor Aleš Michl plans to add Bitcoin to the national bank’s assets. Staying with the metaphors (this time it’s Michl using them), the Governor said he is a pioneer entering the jungle before others do.
Of course, if you compare my position with other bankers, then I’m the one entering the jungle, or the pioneer.
Czech National Bank Governor Aleš MichlMichl told the FT that he will submit a plan to diversify the bank’s asset holdings and eventually allocate up to 5% of the bank’s €140 billion (AU$234 billion) into Bitcoin.
He acknowledged that Bitcoin remains highly volatile but said Trump’s positive comments and actions so far, plus the establishment of crypto ETFs in 2024 make the asset class more desirable.
Related: Bitwise Files S-1 for DOGE ETF as Bitcoin, Ethereum Funds See Massive Outflows
Michl, who used to run an investment fund, said that this makes him naturally interested in financial gains adding that as “a typical investment banker I would say, I like profitability”.
For the diversification of our assets, bitcoin seems good. 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.
Czech National Bank Governor Aleš MichlThe Governor also sees potential for Bitcoin to go to zero and says he’s prepared for any scenario, but he’s willing to take the risk for the sake of diversification and the coin’s potential upside.
In our history we have also had some stocks like Enron or the payment company Wirecard, so we have some experience with bad investments, so, yes, I’m ready […] my goal is to diversify the portfolio, so if bitcoin is good [for this], then let’s have it.
Czech National Bank Governor Aleš MichlThe CNB would gradually buy smaller portions of BTC over a longer period, citing currently record high prices.
US Lawmakers Prepare for Legislative Changes
Meanwhile in South Dakota, Representative Logan Manhart has proposed the introduction of a bill that would create a strategic Bitcoin reserve in the midwestern US state.
This comes weeks after neighbouring North Dakota launched a similar initiative, although their ‘Resolution 3001’ stopped short of mentioning Bitcoin specifically.
Related: Metaplanet Sets Record with Asia’s Largest Equity Raise for BTC as MicroStrategy Announces Strike Preferred Stock Offering
Over in Kentucky, Representative TJ Roberts also vowed he would bring similar Bitcoin reserve efforts to the southeastern state once he returns to the General Assembly.
All in all, the race to establish Bitcoin and crypto reserves is heating up, but it doesn’t look like we aren’t even close to the finishing line.
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