Czech National Bank Approves Proposal to Study Bitcoin as Reserve Asset

Could Bitcoin (BTC) soon find its way on to the balance sheet of a European central bank?

That possibility took at least a small step forward on Thursday after the board of the Czech National Bank (CNB) approved a proposal to consider investing reserves in other assets.

Put forth by the central bank Governor Aleš Michl, the proposal was to study investing the bank’s reserves in “additional asset classes.” In an interview with the FT earlier this week, though, Michl had made clear his interest in this exercise was in possibly adding bitcoin as a reserve asset.

“My goal is to diversify the portfolio, so if bitcoin is good [for that], then let’s have it,” said Michl.

“Based on the results of the analysis, the Bank Board will then decide how to proceed further,” the CNB said in its Thursday statement announcing the approval. “No changes will be implemented in this area until then.”

Not everyone in power in the Czech Republic approves of the idea of exploring bitcoin as a reserve option. “The central bank should symbolize stability,” the country’s Finance Minister Zbynek Stanjura told reporters on Thursday.” If you look at bitcoin trading, it’s definitely not a stable asset.”

Michl’s proposal was also noted by the European Central Bank (ECB), whose President Christine Lagarde took time out of her press conference today to say she’s confident bitcoin won’t be entering the reserves of any of the European Union central banks.

The Czech Republic does not use the euro but the country is in the EU.

The CNB did not comment on the particular assets it’s considering.