In a surprising turn of events Czech Finance minister Zbynek Stanjura, cautioned against the central bank governor’s suggestion to think about allocating a portion of the nation’s foreign exchange reserves to Bitcoin investments.

The remarks come as a response to a previous statement by Czech National Bank’s Governor Ales Michl’s remarks that the nation will think about keeping billions of dollars in bitcoin in its reserves.

Finance Minister Slams Central Bank’s Bitcoin Plan

According to reports, Stanjura stated that the government could not meddle in the decisions taken by the monetary authority and that he supported the independence of the Czech National Bank.

However, he voiced worries that the cryptocurrency’s extreme volatility would make it inappropriate for reserve holdings.

Also Read: Czech Central Bank Considers 5% Bitcoin Allocation From €140B Reserves

Stanjura’s Response Comes After Previous Discussion on National Bitcoin Reserve

Stanjura’s response’s comes a day after Governor Ales Michl stated on Wednesday that the Czech National Bank will think about keeping billions of dollars in bitcoin in its reserves.

If this moves forward, this might be the first time a central bank in the West has moved into the cryptocurrency. According to Michl, the concept was still being considered and no decision would be made right away.

Some have cautioned about the dangers of utilizing cryptocurrencies in public coffers, and central banks have historically kept reserves in more conservative assets. However, if approved, the move will mark a significant step towards financial acceptance of Bitcoin.

Czech Republic’s Crypto Growth

Since assuming leadership of the Czech central bank in 2022, Michl has spearheaded an effort to diversify the bank’s substantial reserves by gradually buying gold and increasing the proportion of the portfolio invested in stocks in order to generate long-term gains.

In an interview with the Financial Times that was published on Wednesday, he stated that he intends to discuss the possibility of incorporating Bitcoin with the bank’s seven-member board on Thursday.

Because of its progressive stance on digital assets, the Czech Republic has become a prominent player in the global cryptocurrency scene.

The nation is home to an increasing number of cryptocurrency exchanges, cryptocurrency-accepting companies, and vibrant community-driven projects.

Particularly in Prague, blockchain and cryptocurrency-related events have taken center stage. The Czech government has demonstrated a rather positive stance toward cryptocurrencies, emphasizing regulation over stringent limitations.

The Czech Republic is already a major player in the Central European cryptocurrency market thanks to its innovative atmosphere and tech-savvy populace, which have accelerated the adoption of cryptocurrencies.

Also Read: Czech Republic Removes Capital Gains Tax on Bitcoin Held Over 3 Years