The Czech National Bank (CNB) has purchased Bitcoin and other digital assets worth $1 million, calling it a “test portfolio,” its first direct exposure to cryptocurrencies.
The move, announced on Thursday, marks a cautious step toward understanding how blockchain-based assets could fit into future financial systems.
According to the CNB, the portfolio includes Bitcoin (BTC), a U.S. dollar-pegged stablecoin, and a tokenized bank deposit.
Made outside the bank’s international reserves, the purchase provides practical experience in handling digital assets rather than indicating a shift in policy or reserve.
Governor Aleš Michl said the initiative began in early 2025 to explore how decentralized assets might complement traditional holdings.
The project, approved by the Bank Board on October 30, followed an internal review concluding that digital assets are becoming a growing feature of institutional portfolios worldwide.
“The goal is to test every process involved in managing digital assets, from custody and key management to security and AML compliance,” Michl said. “We plan to share our findings over the next two to three years.”
Officials said the purchase will not affect the bank’s €140 billion in foreign reserves. The small allocation, they said, shields the bank from Bitcoin’s price volatility.
Through the program, the CNB will study how blockchain technology could influence payments, settlement, and accountability.
Technical teams will test wallet operations, multi-signature controls, and audit procedures for on-chain transactions.
Each asset in the portfolio serves a distinct purpose: Bitcoin represents decentralized money; the stablecoin, fiat-backed stability; and the tokenized deposit, a bridge to regulated finance.
Michl called it a part of a long-term modernization effort. “The koruna will always remain our legal tender, but new forms of money and investment are emerging, and we want to be ready,” he said.
The decision follows nearly a year of internal debate over Bitcoin’s role in the Czech Republic’s reserves. Michl first floated the idea in January 2025, suggesting a small Bitcoin purchase for diversification.
By February, he argued that central banks should study Bitcoin’s underlying technology rather than ignore it.
Not all board members agreed. Jan Kubicek, another member of the Bank Board, warned that Bitcoin’s volatility and legal uncertainties made it unsuitable for reserve holdings. His caution led to a compromise: a limited pilot program instead of a formal reserve allocation.
Michl had initially proposed investing up to 5% of the country’s reserves in Bitcoin, a move that would have made the Czech Republic the first Western central bank to publicly hold the asset.
That plan was rejected, but the $1 million test portfolio serves as a practical middle ground, allowing the CNB to gain operational experience without altering its balance sheet.
Alongside the test portfolio, the CNB launched the CNB Lab, a hub focused on emerging financial technologies. The Lab will research AI applications, instant payments, and tokenized instruments, expanding the bank’s technical capacity for future digital finance.
The Czech initiative comes as European regulators cautiously explore blockchain’s potential. No EU central bank currently holds Bitcoin in its reserves, but discussions around tokenized bonds, regulated stablecoins, and a digital euro have accelerated.
In October, nine European banks revealed plans for a G7-backed stablecoin, while the European Central Bank continues to test digital euro prototypes.
Against that backdrop, the CNB’s step, small but tangible, distinguishes it as one of the few Western monetary authorities directly engaging with crypto assets.
“Bitcoin’s past performance is impressive,” the CNB noted, “but its volatility remains incomparable to conventional assets. This project is about learning, not investing.”
