Connect with us

Bitcoin strategic reserve

Czech Central Bank Head Wants To Buy Bitcoin With 5% Reserve Allocation

Published

on



The Czech National Bank (CNB) is contemplating a groundbreaking shift in its investment strategy by considering the allocation of up to 5% of its reserves into Bitcoin. This potential move, led by Governor Aleš Michl, could position the CNB as the first major central bank in the West to hold digital assets.

Key Takeaways

  • The CNB may invest up to 5% of its €140 billion ($146.13 billion) reserves in Bitcoin.
  • Governor Michl emphasizes Bitcoin’s potential for diversification despite its volatility.
  • The proposal is set to be presented to the bank’s board for approval on January 30, 2025.

A Shift Towards Bitcoin

Governor Aleš Michl has expressed a desire to diversify the CNB’s asset portfolio, highlighting Bitcoin as a viable option. In an interview, he stated, “For the diversification of our assets, Bitcoin seems good.” This statement reflects a growing trend among financial institutions to explore BTC as an alternative investment.

The proposed investment could amount to approximately €7 billion ($7.3 billion) in Bitcoin, which would surpass the CNB’s current gold holdings of €4.3 billion. If approved, this allocation would represent a significant shift from traditional reserve assets, which typically include gold and U.S. dollars.

Related: Trump Signs Executive Order to Explore a U.S. Strategic Bitcoin Reserve

The Rationale Behind the Proposal

Several factors are driving the CNB’s consideration of Bitcoin:

  1. Increasing Institutional Interest: The launch of Bitcoin exchange-traded funds (ETFs) by major asset managers like BlackRock has sparked renewed interest in Bitcoin as a legitimate investment.
  2. Diversification Strategy: Michl believes that Bitcoin’s low correlation with traditional assets like bonds makes it an attractive option for diversifying the bank’s reserves.
  3. Changing Regulatory Landscape: The recent regulatory changes in the U.S., particularly under President Donald Trump, have created a more favorable environment for cryptocurrencies, further encouraging the CNB’s exploration of Bitcoin.

Risks and Considerations

Despite the potential benefits, Michl acknowledges the inherent volatility risks associated with investing in Bitcoin. However, he remains optimistic about its long-term value, stating, “It’s possible to have a big range of outcomes, that Bitcoin will have a value of zero or an absolutely fantastic value.”

The CNB’s board will need to conduct a thorough analysis before making a final decision. Michl emphasized the importance of thoughtful consideration, stating, “The bank board decides, and no decision is imminent.”

Related: Preston Pysh Explains Why SAB 121 Beats a Strategic Bitcoin Reserve

Conclusion

The Czech National Bank’s potential move to invest in Bitcoin marks a significant moment in the evolution of central banking. If approved, this decision could pave the way for other central banks to follow suit, reflecting a broader acceptance of digital assets in the financial landscape. As the CNB prepares to present its proposal, the world watches closely to see if this bold step will redefine the role of Bitcoin in national reserves.





Source link

Bitcoin Policy Institute

US Senator And Congressman Introduce Strategic Bitcoin Reserve Bills To Buy One Million BTC

Published

on


Today at the Bitcoin Policy Institute’s “Bitcoin for America” summit in Washington DC, U.S. Senator from Wyoming Cynthia Lummis announced that she is going to reintroduce her strategic Bitcoin reserve legislation in the Senate today.

“I am so pleased to announce that today I will be reintroducing The Bitcoin Act,” Senator Lummis stated. “And I’ll be joined here shortly by Senator Justice of West Virginia, who is one of the cosponsors. And we have several other additional cosponsors. And a lot of it is a result of the excitement that’s been building.”

“So far cosponsors are [Tommy] Tubberville, [Marsha] Blackburn, [Roger] Marshall, [Bernie] Moreno, and [Jim] Justice,” Lummis continued. “We have a couple more feelers out for original cosponsors today but, the House as well through Nick Begich, has six original consponsors.”

Complimentary to Senator Lummis’ Bitcoin act in the Senate, U.S. Congressman Nick Begich announced he will also be introducing the Bitcoin reserve legislation in the House today.

“Today, I will be introducing the Bitcoin Act of 2025 in the United States House,” Congressman Begich said. “This is a bold and forward looking legislative initiative designed to ensure the United States secures its financial independence and maintains its leadership in the global digital economy.”

“The momentum is in our hands and we need to make this happen. Thankfully, President Trump is with us and the opportunities are boundless,” Lummis concluded.

Just last week, President Donald Trump signed an executive order to create a federal strategic Bitcoin reserve. The reserve is to be made up of confiscated bitcoin by the federal government from hacks and seizures, creating an estimated reserve of about 200,000 BTC, pending an official audit. However, this reserve, as it stands, has the potential to be overturned by future presidential administrations. Legislation like the Bitcoin Act of 2025 would solve this potential issue as it would see the United States purchase 200,000 bitcoin per year until it has bought a total of 1,000,000 BTC — to be held for a minimum of 20 years.

$115 billion asset manager VanEck claims that this strategic bitcoin reserve “could help offset national debt”, stating that “if the U.S. government follows the BITCOIN Act’s proposed path – accumulating 1 million BTC by 2029 – our analysis suggests this reserve could offset around $21 trillion of national debt by 2049.”





Source link

Continue Reading

Bitcoin Scaling

The Clock Is Ticking While You Do Nothing

Published

on


Bitcoin does not exist in a vacuum. It does not exist outside the flow of time. We cannot just sit on our hands and do nothing while chasing the perfect, flawless, no downside improvements to this network and protocol. 

The real world does not stop

Yesterday the most powerful nation state on the planet officially instituted a Strategic Reserve of Bitcoin. We are past the point of no return on a path now. Governments are here, they are paying attention, they are actively participating now. The level of that participation will not shrink, it will not be reduced, it will only grow from here. 

We do not have time to keep fucking around treating this project as a toy, an academic curiosity, or an intellectual puzzle. It needs to scale, now. The counter narratives to neuter Bitcoin due to its lack of scalability are not just already here, they are massive. They have support from huge swaths of this ecosystem. 

“Bitcoin isn’t for spending, it’s for saving.”

“If you need to transact, just use stablecoins (that are centralized, censorable, and seizable).”

“Bitcoin is collateral.”

We are sleep walking into a future where Bitcoin is a neutered useless toy. Where it provides no privacy to anyone. It provides no censorship resistance or sovereignty to anyone. Where it is a useless hunk of lead to anyone outside of a white listed and surveilled system. 

Governments aren’t going to just sit on their thumbs while we bicker and waste time until we find the perfect solution to scalability, and then go “Sure things folks, we’ll get right on activating that.” They will fight it tooth and nail. They do not care about you, your freedom, or your prosperity. They care about their own power. They will not support things that degrade their power and influence over you. 

“Sorry, we have to have our guys look at this first, we’ll get back to you.”

“This seems risky, we can’t allow some internet nerds who want to tinker to put at risk the value of a strategic national asset.”

“Nope, this seems like it will enable things the last few years of regulation decided were illegal.”

The world doesn’t give a shit that you don’t have the perfect move or course of action available, it will not sit on its ass and wait for that option to become available to you. It will keep moving forward, it will keep removing and limiting the options available to you. There is no pause button. 

It’s time to stop fucking around and acting like Bitcoin is some intellectual exercise, it is a real thing in the real world. And it happens to be the only thing that will give us any chance of the future not being a dystopic nightmarish hellhole. 

This isn’t a game, and it’s time to stop pretending like it is. 



Source link

Continue Reading

Bitcoin

Trump’s Strategic Bitcoin Reserve Removes $17B in Potential Selling Pressure From BTC, Experts Share Views

Published

on



U.S. President Donald Trump signed an executive order Thursday to establish a strategic bitcoin(BTC) reserve that includes BTC seized by the U.S. government through law enforcement actions.

White House crypto and AI czar David Sacks said on X that the stockpile will also include other coins forfeited in criminal or civil proceedings while stressing that no taxpayer money will spent on acquiring BTC or other coins.

According to Arkham Intelligence, the U.S. government currently holds 198,000 bitcoins worth about $17.3 billion. Treating the same as reserve essentially takes out over $17 billion in selling pressure from the market.

Still, bitcoin extended losses, hitting lows near $84,700, reflecting investor disappointment over the lack of new BTC purchases for the U.S. government. Prices, however, have recovered to $87,600 at press time in hopes that Trump will announce a favorable crypto tax policy at Friday’s White House crypto summit.

Here is what market pundits had to say about the strategic reserve.

Valentin Fournier, analyst at BRN

“The Executive Order has disappointed some investors, as it explicitly states that the government will not acquire additional assets beyond those obtained through forfeitures. This lack of a clear acquisition plan has created confusion, weighing on market sentiment and leading to a 4% daily decline in Bitcoin, Ethereum, and Solana.”

“Commerce Secretary Howard Lutnick has been authorized to develop a budget-neutral strategy for acquiring additional Bitcoin. Given Lutnick’s strong ties to Bitcoin through his involvement with MicroStrategy, this could signal a hidden accumulation strategy by the U.S. government, potentially igniting a parabolic rally.”

Dick Lo, CEO of Quant-driven digital assets trading firm TDX Strategies

“Initial disappointment as the market had built up high expectations leading up to the announcement. However, the news is unambiguous positive: It would have been unrealistic to expect new buying without a plan on how it would be funded; An important distinction has been made between Bitcoin and the rest of crypto, i.e. not a single dollar will be spent buying altcoins.”

“Potential further positive announcements to come from the Crypto Summit: more favorable tax treatment towards crypto.”

Andrew O’Neill, Digital Assets Managing Director, S&P Global Ratings

“The significance of this executive order is mainly symbolic, as it marks the first time bitcoin is formally recognized as a reserve asset of the United States government. Currently, the reserve will only include bitcoin already owned by the U.S. government, specifically BTC forfeited through criminal or civil procedures. The order commits to holding this BTC as a reserve asset without selling it.

“However, the order does contemplate the possibility of acquiring additional bitcoin for the reserve, provided it can be done in a budget-neutral manner.There is no indication yet of how much, if any, would be acquired nor a timeline. The order also clearly distinguishes between bitcoin and other digital assets, which will not be included in the reserve but rather, included in a separate “stockpile.”

Jeff Anderson, head of Asia at STS Digital, said in a Telegram message:

“Market is re-pricing tail risk now that the U.S. won’t be actively buying BTC. The BVIV [the 30-day implied volatility index] is down 6 vol points this morning.”

This is a running list of comments from crypto market experts and will be updated regularly.





Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon