Will the Czech Republic be the first country that holds a coin reserves in Bitcoin

Governor of Czech Central Bank, Elsha Michal, revealed in an interview that he would vote on Thursday offer to allocate up to 5% of the European State’s foreign exchange to acquire Bitcoin; in an interview with “Financial Times”, Michal said that despite the very high volatility of the cryptographic currency , There are justifications for the move, including the launch of Bitcoin traders by investment banks, as well as the support of the new American government under Donald Trump in Bitcoin.

If the proposal is approved, the Czech Republic will become the first Western country that holds the currency as part of its currency tosses, which in the case of the Czech its value is estimated at $ 140 billion.

Three weeks ago, the Governor announced that he would promote the issue at the upcoming meetings of the Czech Central Bank. “To diversify our currency investment – Bitcoin looks good,” he added in an interview with the British newspaper this week. He said that the Trump administration “may create a bubble to Bitcoin,” but because in his estimation, “the trend will be a value – because it is an alternative investment for more and more people.”

At the last Davos conference, Larker Pink CEO Larry Pink said that Bitcoin’s value could leap to $ 600-700,000 (today it stands at about $ 100,000) if wealth funds and large investment bodies will allocate between 2% and 5% From their investments to Bitcoin. ”

The Czech Governor’s position is contrary to that of the European Central Bank, which recently said that Bitcoin’s value is “equal to zero”. Also, the American “featured” cannot by law to purchase Bitcoin because it is not in the approved list of investments and currencies. “We have no intention of changing the law,” Fed, Jerome Powell recently said.

Michal said he was well aware of this fact. “If you compare my position to other bankers, then I am the one who goes into the jungle alone, the striker,” he said. The newspaper noted that the Czech Replacement Management, which is weighing half of the annual European-European GDP is exceptional, because about 22% of them are assigned to shares. Other central banks prefer bond or foreign currencies.