Poland’s central bank chief floats using gold-linked profits for $47B defense fund

Adam Glapiński, Governor of the National Bank of Poland (NBP), suggested channeling NBP profits, estimated at 185 billion zloty ($47B), into a domestic defense fund. This move aims to finance Poland's significant military buildup without incurring external debt, specifically circumventing a proposed EU loan program tied to Brussels' conditions. The funding mechanism likely involves reallocating profits that would otherwise go to the state treasury, capitalizing on substantial unrealized gains from Poland's rapidly growing gold reserves, rather than outright selling the bullion. Poland has aggressively stockpiled gold, increasing its holdings fivefold since 2018 to 550 tons, with plans to reach 700 tons. Analysts view this as leveraging the value of gold holdings through accounting maneuvers, which provides relief to gold markets expecting continued central bank buying. The broader implication is a move toward sovereign self-funding over multilateral debt, which could appeal to holders of hard assets like Bitcoin, though it raises concerns about blurring the lines between monetary policy and fiscal authority.

(Source：Crypto Briefing)