Key Points
- The CNB Bank Board approved a proposal to analyze options for investing in additional asset classes.
- The Czech President recently signed a new law exempting BTC taxes after three years of holding.
The Czech National Bank governor, Aleš Michl, showed support for Bitcoin and its technology once again. He differentiated BTC from other digital assets, saying that it’s important to analyze and study it without fear.
Differentiating Bitcoin From Crypto
In a new post on X today, Michl showed renewed support for Bitcoin. He began his notes by saying that if people intend to invest in crypto they should exercise extreme caution, as the market is still in its infancy.
He recalled the ’90s in his country when the transition from socialism to capitalism saw the birth and simultaneous collapse of many investment funds. According to his predictions, the crypto market will experience similar failures and successes.
This is why he advises people to DYOR before deciding to invest in the market, and make sure that they understand the risks that come with investing in digital assets.
However, he said that Bitcoin is not like other digital assets and should not be “lumped” together with them.
Studying Bitcoin “Will Strengthen Us”
Michl said that central bankers should study Bitcoin and explore the technology that it’s built on. He highlighted that studying Bitcoin will not bring any harm, on the contrary, it will strengthen people.
He also mentioned that last month he revealed a proposal for the CNB Bank Board to analyse the possibility of creating a Bitcoin test portfolio.
This step was motivated by a desire to learn about BTC and explore its benefits. He said that it’s important to adapt to changing conditions in the financial markets and explore new reserve management options.
Exploring the Bitcoin Reserve Option
Michl also explained Bitcoin’s volatility, stressing that it’s a high-risk asset for professional investors who are aware of the risks.
However, despite its volatility, Bitcoin continued to see increased adoption especially after the BTC ETFs launch in the US in January 2024. The crypto products recorded huge success, with the biggest of BTC ETF, BlackRock’s IBIT, becoming the fastest growing in history, as the company’s CEO Larry Fink said in March 2024.
By now, IBIT alone has a cumulative inflow of almost $41 billion since launch, according to data from SoSoValue.
Meanwhile, the BTC global adoption intensified with tech giants like Google already collaborating with the Bitcoin ecosystem.
Michl also said that the Bank Board approved the proposal to analyze options for investing in additional asset classes. Based on the results of the analysis, the Bank Board will decide how to proceed further and no changes will be implemented in the area until further notice.
Michl said that this is only the initial stage of the discussion and the final decision will depend on the outcome of the upcoming outcome of the analysis.
Important Bitcoin Progress in the Czech Republic
In January, Michl said that he would present a proposal for assessing BTC to the Bank Board to analyze its potential role in the country’s reserves.
On January 30, he noted that the Bank Board of the Czech National Bank approved the proposal.
This month, the Czech President signed a new law that brings massive benefits for Bitcoin holders in the country – there will be no BTC taxes for people holding the digital asset for at least three years.
Meanwhile, today, Bitcoin price rebounded above $96,000, following a drop below $94,000 on February 18.
With its more than $1.9 trillion in market cap, Bitcoin is currently the 7th asset in the list of top assets by market cap in the world.
