The head of the Czech national bank is considering the prospect of buying bitcoins. Why would this be necessary?
In the first half of 2024, then US presidential candidate Donald Trump surprised the world with his explicit support for the cryptocurrency industry. He claimed that the coin niche needed adequate regulation, which would eventually turn America into the crypto capital of the world. The politician then promised to fire current SEC Chairman Gary Gensler, before going on to announce the prospect of a national Bitcoin reserve. Things haven’t even come close to that yet, but other states have also started talking about such an idea.
Which states and countries are buying Bitcoin
The trend of governments of different countries buying bitcoins is not new, but still remains uncommon. Still, on 7 September 2021, BTC became the national currency of El Salvador on a par with the US dollar.
And the day before, the country’s president, Nayib Bukele, announced the purchase of 400 coins at a rate of $51,769. Since then, the state has supposedly accumulated 6010 BTC, which today is valued at $590 million. The increment in the position due to the rise in the value of Bitcoin was $167 million.
Bitcoin purchases by the government of El Salvador
Now the head of the Czech Central Bank, Aleš Michl, is considering the possibility of accumulating BTC. According to him, the cryptocurrency could become a possible tool for diversifying the country’s assets, which indicates the gradual global recognition of Bitcoin and other coins as a technology for saving capital.
Mihl told CNN Prima News on air. The expert noted that he is considering the prospect of buying “a few bitcoins” for diversification. Such an amount would not be considered a significant investment for the bank, but it must in any case be approved by the Central Bank’s seven-member board.
Advisor to the relevant board, Yiannis Aliapoulios, confirmed that the bank is not currently exploring the allocation of funds to buy BTC. Here is his rejoinder, as quoted by Cointelegraph.
As a result, the Czech national bank is not considering the purchase of crypto assets for its own reserves. Although Governor Michl does not rule out a debate on this topic in the future.
Right now, the bank is focused on acquiring gold. According to the institution’s plan, the precious metal will account for approximately 5 per cent of the bank’s total assets by 2028.
Buying cryptocurrency by investors
Intergovernmental blockchain expert Andy Lean commented on the happening. He believes that the news is indicative of Bitcoin’s increasing recognition as a full-fledged investment at the highest levels. Here’s a quote.
As more countries consider a similar path, we may see a gradual rethinking of what is considered a “safe” reserve asset. If Bitcoin takes a place in national reserves, something like this could fundamentally change the global financial system. It will move towards more decentralised and digital approaches to economic stability.
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