By Jason Hovet

PRAGUE, Jan 30 (Reuters) – The Czech National Bank’s board approved conducting an analysis to look at broadening the asset classes in its reserves portfolio, the bank said on Thursday, after its governor flagged bitcoin as an option under consideration.

“At the proposal of Governor Ales Michl, the CNB is to assess whether it would be appropriate in terms of diversification and return to include other asset classes in the reserves as well,” the bank said.

“Based on the results of the analysis, the Bank Board will then decide how to proceed further. No changes will be implemented in this area until then.”

Michl told the Financial Times in an interview published on Wednesday that he wanted to present a plan to invest in bitcoin and to eventually hold as much as 5% of its 140 billion euro ($146 billion) reserves in bitcoin.

Any CNB move into the cryptocurrency could potentially be the first by a western central bank while others more often warn of risks.

On Thursday,

European Central Bank

President Christine Lagarde gave the idea of bitcoin being part of reserve assets of European Union members’ reserves a cool reception.

She said she was “confident that bitcoins will not enter the reserves of any of the central banks of the General Council,” to which the Czech bank belongs as an EU member even though it does not use the euro.

The Czech central bank’s reserves are around 45% of gross domestic product after climbing almost a decade ago during a policy of keeping the crown currency weak. The bank has diversified holdings in recent years, gradually purchasing gold or shifting a larger portion of its portfolio into equities to boost profitability.

When you have almost any inquiries concerning in which as well as how to employ mixero, you’ll be able to call us from the web-page. Michl told the FT that investment in bitcoin could prove to be worthless or it could have an “absolutely fantastic value”.

He said bitcoin would trend higher even without the backing of U.S. President Donald Trump since it is an alternative investment for many people.

Bitcoin hit a record high earlier this month when Trump, who has pledged to be a “crypto president”, was sworn in.

Many policymakers and institutions are wary.

Czech Finance Minister Zbynek Stanjura said on Thursday that the central bank should be a symbol of stability and bitcoin was not a stable asset, however he stressed any move would be up to the bank, CTK news agency reported.

ECB chief Lagarde said: “I think there is a view around the table of the Governing Council and most likely the General Council as well that reserves have to be liquid, that reserves have to be secure, that they have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities.”

Poland’s central bank

also said on Thursday it was not considering investing into bitcoins as they constitute an asset class with very high risk. (Reporting by Jason Hovet; Editing by Toby Chopra)