Czech Central Bank Defends 1% Bitcoin Reserve Allocation

Czech National Bank Governor Aleš Michl defended the bank’s 1% Bitcoin reserve allocation as part of a conservative but innovative strategy. Michl said Czech National Bank research found low long-term correlation between Bitcoin and traditional reserve assets, which could raise expected returns in Czech Koruna terms without increasing overall portfolio risk. He said the bank manages about $180 billion in foreign exchange reserves, equal to roughly 44% of Czech GDP. Michl also tied the move to a broader strategy that pairs strict inflation control with measured exposure to non-traditional assets.

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