The probability of a European central bank with Bitcoin reserves has increased, despite recent comments from the president of the European Central Bank, Christine Lagarde, rejecting assets as unsuitable.
The Czech National Bank approved a study to assess how Bitcoin (BTC) could serve as a reserve assets following a proposal from the Governor of CNB Aleš Michl.
Previously, Michl argued that the bank should diversify its investment portfolio and consider allocating funds to other asset classes, including Bitcoin. His proposal suggested allocating the 140 billion euros of the CNB (145.6 billion dollars) in reserves at the BTC. “Based on the results of the analysis, the banking council will then decide how to continue,” said the CNB in an announcement of January 30 after approving Michl’s study.
While Michl’s idea gained ground within the CNB, the highest banking official in Europe is not convinced. Coinciding with the CNB decision, the president of the ECB, Christine Lagarde, said that she was “confident” that no EU central bank will adopt Bitcoin as a reserve asset.
In particular, although the Czech Republic is a member of the EU, it does not use the euro as an official currency.
Bitcoin’s concept of national and institutional reserves is gaining momentum in Europe and beyond. In the United States, President Trump and several senators have worked on legislation to establish a BTC strategic reserve.
The American states have also joined the race because nearly a dozen jurisdictions have introduced laws to buy BTC with dollars of taxpayers.
