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Aleš Michl, Governor of the Czech National Bank (CNB), recently expressed his interest in bitcoins (BTC) and said that central banks should study it rather than worry about it. In a recent post he stressed that BTC has a unique technology that should not adapt to other digital assets.
Bitcoin must be studied and not afraid! According to the Governor of the Czech National Bank
“We, central bankers, should be studied and explore the technology on which it is built. The study of Bitcoins will not hurt us – on the contrary, it will strengthen us, ”said Aleš Michl, governor of the Czech National Bank (CNB).
These statements come three weeks after introducing, at the CNB 30 Council, a proposal to create a “test portfolio” in Bitcoins. The purpose of this initiative is to analyze this highly volatile asset and experience its use in the reserves of the central bank.
However, Michl said that this initiative is only its initial phase of analysis. Any final decision will depend on the results of the evaluation of the CNB.
Potential investment of $ 7.3 billion
If the proposal is verified, CNB could become the first European central bank to integrate Bitcoin into its official reserves. The plan plans to invest up to 5 % of the total reserve of the bank or about $ 7.3 billion.
According to André Drogosch, a research manager of Bitwis, such a purchase would have a significant impact on the BTC market. He stated that these acquisitions would represent approximately 5.3 months of newly undermined bids of bitcoins.
Careful Access to Volatility of Bitcoins
Although this initiative is of interest, it also raises concerns, mainly because of the volatility of Bitcoins. Many financial institutions remain skeptical about the integration of cryptocurrencies into official reserves and fear their unpredictability and uncertain regulation.
Despite the opposition Christine Lagard on the insertion of BTC into central banks, if the CNB had to approve this proposal, it would mean a turning point in institutional recognition of Bitcoin in Europe. And he could even inspire other central banks to explore this journey.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.