• Ales Michl published his opinion on Bitcoin amid the LIBRA scandal.
• The head of the CNB believes that central banks should study the technology on which it is based.
• He distinguished Bitcoin from other crypto assets and advised them to carefully weigh all risks when investing.

The head of the Czech National Bank (CNB), Ales Michl, urged not to equate Bitcoin with other crypto assets. His comment came against the backdrop of the scandal surrounding the LIBRA token and the involvement of Argentine President Javier Miley in its promotion.

Recall that Michl made a proposal to invest part of the CNB reserves in the first cryptocurrency. In his opinion, counterparties in the banking sector need to study the technology on which it was created and adapt to new market conditions.

The Board has accepted this proposal. The regulator will analyze the potential benefits of investing part of the central bank's reserves in Bitcoin and then make a final decision.

Michl's initiative, however, was met with criticism, even though he admitted that Bitcoin remains an extremely volatile and risky asset. In particular, European Central Bank Chairwoman Christine Lagarde said that none of the Eurozone banks would invest in the first cryptocurrency.

In his note, Michl emphasized that the crypto asset market is still in its infancy and will experience ups and downs. However, this does not apply to the first cryptocurrency:

"Bitcoin is a completely different story. It should not be equated with other crypto assets. We as central bankers must study it and research the technology on which it is based. Learning Bitcoin will not harm us – on the contrary, it will strengthen us.”

In the publication, Michl did not specify what ups and downs he was talking about. However, his comment came against the backdrop of a scandal surrounding the memcoin LIBRA, which was launched with the support of Argentine President Javier Miley.

Miley is threatened with impeachment. In addition, information appeared in the press that the creators of the project paid his sister to promote Memcoin. According to media reports, the latter wants to resign.