Czech Republic invests in crypto, eyes possible future Bitcoin reserve
The Czech Republic has officially stepped into crypto. On Thursday, the CNB said it bought a “test portfolio” of digital assets that it will use over the next few years to learn how to buy, store, and manage crypto. The portfolio is mostly Bitcoin, with smaller allocations to stablecoins and tokenized bank deposits.
The bank plans to use the pilot to practice custody, simulate stress scenarios, and refine anti-money laundering procedures. While this is a limited test, it fits into a longer-term effort to thoughtfully integrate crypto into the financial system.
Earlier this year, the CNB floated the idea of creating a multi‑billion‑dollar Bitcoin reserve. That proposal did not move forward. Today’s announcement makes clear there are no immediate plans to establish a Bitcoin reserve. Still, the bank noted that the infrastructure built during this pilot could later be used in routine operations to hold digital assets as part of official reserves.
CNB Governor Aleš Michl said the bank will publish a full assessment of the pilot in two to three years. He also pointed to future retail uses of tokenized assets, suggesting a world where Czech koruna could be used to buy tokenized Czech bonds as easily as everyday purchases.
An analysis accompanying the announcement focused on both the risks and opportunities of Bitcoin. It described Bitcoin as a more mature and viable project than in years past, even as challenges remain. From the central bank’s perspective, now is the time to test the technology and evaluate it in detail.
Market context: Bitcoin fell below 100,000 for the third time this month as investors trimmed risk assets, including crypto and tech stocks. It recently traded around 99,611, per CoinGecko, down more than 2% in 24 hours.
The CNB also highlighted the growing role of stablecoins—especially USDT and USDC—in global finance. Interest in stablecoin adoption among major central banks appears to be accelerating, with other institutions signaling plans to move faster on the topic.
