The Czech National Bank (CNB), the central bank of the Czech Republic, announced on Thursday the purchase of cryptocurrencies worth $1 million for the first time. This initiative aims to test a digital asset reserve and gain “practical experience” in handling digital assets.
According to the announcement, CNB’s reserves will include Bitcoin (BTC), one US dollar-pegged stablecoin, and one tokenized bank deposit. While the test is intended to study cryptocurrencies and prepare the bank for potential international adoption to remain globally competitive, the CNB clarified that it is not planning to adopt a digital asset reserve in the “near future.”
CNB governor Aleš Michl commented on the development, stating:
“It is realistic to expect that, in the future, it will be easy to use the koruna to buy tokenized Czech bonds and more—with one tap an espresso; with another, an investment such as a bond or another asset that used to be the preserve of larger investors.”
In addition to the cryptocurrency purchase, the bank launched the CNB Lab Innovation Hub. This initiative is designed to test blockchain and other financial technologies for use in commerce and to help adapt monetary policy to rapid technological changes.
The CNB’s announcement reflects the growing institutional adoption of digital assets by central banks and nation-states worldwide, as the financial landscape shifts toward on-chain, internet-first finance.
### CNB’s Journey Toward Crypto Adoption
The CNB began exploring Bitcoin in January as a way to diversify its international asset reserves, following a pro-crypto regulatory shift in the United States. During the same month, Michl proposed purchasing up to $7.3 billion worth of BTC, approximately 5% of the bank’s reserves, to establish a Bitcoin reserve. However, this plan was not approved by the CNB board.
Michl explained, “An asset under consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio.” He also noted that BTC “could one day be worth either zero or a huge amount.”
In July, the CNB further expanded its crypto exposure by adding 51,732 shares of Coinbase—a major cryptocurrency exchange—to its investment portfolio. These shares were valued at about $18 million at the time of purchase and are worth over $15.7 million as of this writing.
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The CNB’s strategic moves signal an increasing openness to integrating digital assets within traditional financial systems, positioning the Czech Republic at the forefront of the evolving global financial ecosystem.
https://bitcoinethereumnews.com/bitcoin/czech-national-bank-buys-1m-btc-crypto-to-test-crypto-reserve/