Czech central bank makes first crypto investment with $20m Coinbase shares buy

As previously reported by crypto.news earlier this year, Governor of the Czech National Bank, Aleš Michl, expressed intentions to invest in Bitcoin by potentially allocating as much as 5% of the banks reserves into digital assets.

If the suggestion is approved, up to 5% of the Czech central bank‘s €140 billion in reserves could be allocated into Bitcoin (BTC). At the time, Michl viewed the proposal as a positive step in diversifying the bank’s assets, especially through an asset like BTC. The proposal was lodged around the end of January and is still pending approval.

However, other central bank officials have pushed back against Michl‘s proposal, citing legal uncertainties and the volatile nature of digital assets. Board member Jan Kubicek brought up Bitcoin’s extreme volatility that he says undermines it as an attractive central bank asset.

At the moment, the Czech central bank has not decided on a definitive ‘yes’ or ‘no’ to the proposal. Instead, officials claim to still be mulling over BTC as a new asset class while they continue to study it.

Most recently, Coinbase announced that Opyn‘s CEO Andrew Leone and Head of Research Joe Clark will be joining the company in a talent-focused acquisition. The move marks Coinbase’s recent efforts to bring traditional market functionality onto public ledgers.