- Polymarket predicts a 55% chance of the U.S. establishing a Bitcoin reserve by 2025.
- Czech National Bank plans to invest 5% of reserves, totaling €7 billion, in Bitcoin.
- Michl’s investment banking background shapes his bullish view on Bitcoin’s profitability.
Polymarket, a leading prediction market, has estimated a 55% chance that the United States will establish a Bitcoin reserve by 2025. The market has generated significant interest, with trading volumes exceeding $531,500.
While the U.S. debates the feasibility of such a move, another country, the Czech Republic, is already taking action. Czech National Bank Governor Aleš Michl has outlined a bold plan to allocate a portion of the country’s reserves to Bitcoin, signaling growing global interest in digital assets as a reserve asset.
Czech National Bank’s Bitcoin Reserve Plans
Governor Michl’s proposal involves allocating 5% of the Czech National Bank’s €140 billion reserves into Bitcoin. This move could see up to €7 billion invested in the cryptocurrency.
Michl argues that Bitcoin’s potential for diversification outweighs its volatility, a sentiment that echoes the growing interest from global financial institutions. Michl also pointed out that major firms, including BlackRock, have successfully launched regulated Bitcoin ETFs, which have performed well in 2024.
The Czech National Bank’s strategy appears to be inspired, in part, by the U.S. government’s potential Bitcoin reserve plans. Michl speaking to the Financial Times, the actions of U.S. policymakers, particularly under the leadership of President Donald Trump, have paved the way for Bitcoin as an alternative investment. The U.S. administration’s focus on digital assets, especially through deregulation efforts and executive orders, has sparked similar discussions across the globe.
A Contrarian View on Bitcoin Reserves
Unlike the U.S. Federal Reserve, which has yet to embrace Bitcoin as a reserve asset, the Czech National Bank is adopting a more aggressive stance. U.S. Federal Reserve Chairman Jerome Powell earlier stated that the Fed has no plans to change laws to allow Bitcoin reserves, despite growing interest in digital currencies.
In contrast, Michl’s background in investment banking has led him to view Bitcoin as a profitable investment, even if it carries risk. He emphasized that holding 5% of foreign reserves in Bitcoin over the past decade would have significantly boosted annual returns, despite the asset’s inherent volatility.
