Czech National Bank could be first Western central bank to hold crypto as governor proposes Bitcoin investment

The Czech National Bank (ČNB) is exploring the possibility of investing in Bitcoin as part of its strategy to diversify its reserves.

According to the Financial Times, Governor Aleš Michl plans to propose the idea at a board meeting scheduled today, which, if approved, could see the bank allocate up to 5% of its €140 billion reserves to Bitcoin.  

Michl acknowledged Bitcoin’s volatility and limited track record but highlighted growing institutional interest in the cryptocurrency following the launch of Bitcoin ETFs by BlackRock and others in 2024. He also cited US President Donald Trump’s efforts to deregulate the crypto sector and promote digital assets as factors driving Bitcoin’s appeal.  

“For the diversification of our assets, Bitcoin seems good,” Michl told the FT

“Those [Trump] guys can now kind of create some bubble for bitcoin, but I think the trend would be an increase without those guys as well, because it’s an alternative [investment] for more people.”

He described himself as a “pioneer” among central bankers, noting his background as an investment banker and his focus on profitability.  

If approved, the move would make the ČNB the first central bank in a Western nation to hold cryptocurrency assets. Central banks traditionally invest in conservative assets like US Treasuries, bonds, and equities, but none have publicly adopted crypto.  

While other central banks remain cautious about Bitcoin, many are increasingly experimenting with blockchain technology and tokenization. The European Central Bank (ECB), for example, recently highlighted blockchain’s potential to streamline wholesale settlement processes, reduce risks, and unlock new opportunities in global trade.  

Disclaimer: The content on this website is for informational purposes only and does not constitute financial, investment, or legal advice. Always consult a qualified professional before making financial decisions.

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