TechFlow news, February 19: Aleš Michl, Governor of the Czech National Bank, posted on social media stating that the bank's board proposed analyzing the possibility of establishing a Bitcoin test investment portfolio during its meeting on January 30, 2025. Michl noted that Bitcoin should not be conflated with other crypto assets, and central banks should study and explore its underlying technology. Such research would not harm the central bank's interests but rather strengthen its capabilities.
Michl emphasized that Bitcoin is highly volatile, with its value potentially facing two extremes—either dropping to zero or reaching very high levels. The Czech National Bank's board has approved the proposal to analyze investing in this new asset class; however, no changes will be implemented until the analysis is completed and further board decisions are made.
He also compared today’s crypto market to the period in the 1990s when the Czech Republic transitioned from socialism to capitalism—a time when many investment funds emerged but also collapsed. He urged investors to remain cautious about crypto assets and only invest in projects they fully understand and are willing to bear the full risk of loss.
