Czech Central Bank Governor Proposes Bitcoin Investment, Interest Rate Cut
Czech National Bank Governor Ales Michl plans to present the central bank's board with a proposal to invest in Bitcoin.
Bitcoin Diversification and Rising Trend
In an interview with the Financial Times, Michl stated that he believes Bitcoin has potential for diversifying the bank's asset portfolio. He added that even without the support of President Donald Trump, the cryptocurrency's value is likely to appreciate due to its appeal as an alternative investment.
Interest Rate Reduction Expected
Michl also indicated that the bank is "very likely" to reduce interest rates by 25 basis points next week.
Bitcoin Reserves and Board Approval
If approved by the board, the Czech National Bank could allocate up to 5% of its €140 billion reserves to Bitcoin.
Investor Interest and Market Developments
Michl cited the launch of Bitcoin exchange-traded funds by firms like BlackRock as evidence of growing investor interest in the cryptocurrency. Regulatory developments and optimism over easing hurdles under the Trump administration have also contributed to Bitcoin's rally.