Today in crypto, the governor of the Czech National Bank said he would consider Bitcoin as part of the bank’s diversification strategy in the future, the United States Federal Reserve’s Michael Barr has announced plans to resign as vice chair for supervision — which is seen as a win for crypto — and Polymarket correctly predicted the resignation of Canadian Prime Minister Justin Trudeau.
Czech National Bank governor weighs Bitcoin for future reserve strategy
The governor of the Czech National Bank, Aleš Michl, recently considered Bitcoin as a potential diversification strategy for the country’s foreign exchange reserves, highlighting growing government interest in cryptocurrency as a savings technology.
In an interview with CNN Prima News, Michl said he was considering acquiring “a few Bitcoin” for diversification, which wouldn’t count as a significant investment for the bank.
The Czech National Bank’s board, composed of seven members, would need to approve any decision to acquire Bitcoin.
When asked about a potential acquisition, Janis Aliapulios, an adviser to the board, confirmed that the bank is not currently planning a Bitcoin (BTC) investment. Still, Michl remains open to considering Bitcoin diversification in the future.
“To sum up, CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic,” Aliapulios told Cointelegraph.
The bank will continue its diversification plan via gold purchases in the near future, with plans to increase gold holdings to about 5% of its total assets by 2028, Aliapulios added.
Bitcoin could emerge as a significant reserve asset next to gold, thanks to its robust yearly returns. During the past year, Bitcoin rose by over 131% while gold prices rose by about 30%, TradingView data shows.
BTC and gold, 1-year chart. Source: Cointelegraph/TradingView
US Fed bank regulator Michael Barr to step down
The United States Federal Reserve’s Michael Barr is set to resign as vice chair for supervision — marking the latest exit by a US official apparently linked to “Operation Chokepoint 2.0” — a purportedly concerted federal effort to debank crypto companies.
Barr’s resignation will take effect on Feb. 28 — or earlier, if a successor is appointed, he said in a Jan. 6 letter addressed to US President Joe Biden.
Source: Caitlin Long
Barr will, however, continue to serve as a member of the Federal Reserve Board of Governors.
Some crypto industry executives have viewed Barr as a key reason why many US banks have been hesitant to offer services to crypto firms, especially after a March 9, 2023 speech where he seemingly confirmed the central bank’s outlook:
“We would likely view it as unsafe and unsound for banks to directly own crypto-assets on their balance sheets.”
Polymarket users wager correctly on Canadian PM’s resignation
Prediction market Polymarket correctly predicted the resignation of Canadian Prime Minister Justin Trudeau on Jan. 6.
Rumors of Trudeau’s resignation began to swirl over the weekend after local media reports suggested the Canadian leader was strongly contemplating stepping down. However, there was no official announcement until late morning on Jan. 6.
In a press conference, Trudeau said the Liberal Party would select its next leader “through a robust, nationwide, competitive process.”
Before the official announcement, Polymarket placed the odds of Trudeau’s resignation at 80%.
Odds of Trudeau’s resignation surged early on Jan. 6. Source: Polymarket
The prediction market also gave 91% odds that the Conservative Party leader Pierre Poilievre would become Canada’s next prime minister. Poilievre has been described as pro-crypto, especially following the Canadian truckers’ protest during COVID-19 lockdowns.
Polymarket had the finger on the pulse of the US presidential election, correctly predicting Donald Trump’s eventual victory.
