Czech National Bank Purchases of First Digital Assets

The Czech National Bank (CNB)—the central bank of the Czech Republic—announced its first-ever purchase of digital assets, totaling approximately $1 million. This marks a historic step as the first central bank to publicly disclose acquiring Bitcoin (BTC).

The Czech National Bank’s (CNB) $1 million acquisition of Bitcoin and other digital assets is framed as a limited experimental pilot rather than a strategic investment. However, its significance extends far beyond the modest sum, representing a cautious yet pivotal entry by a Western central bank into blockchain-based assets.

The acquisition was approved by the CNB’s Bank Board on October 30, 2025, and executed through a regulated platform outside the bank’s international reserves. The purchase is not aimed at financial returns but to test operational processes for blockchain-based assets, including: Purchasing and custody.

Anti-money laundering (AML) compliance. Crisis response and tokenization workflows. The portfolio will be evaluated over 2–3 years, with the CNB planning to share insights publicly. It represents just 0.0006% of the CNB’s total assets, underscoring its limited, exploratory nature.

Governor Aleš Michl proposed the idea in January 2025 to prepare for a future where digital assets integrate with traditional finance, such as enabling seamless purchases of tokenized Czech bonds alongside everyday transactions.

The CNB noted that while it could invest in Bitcoin via exchange-traded funds (ETFs) under current laws, it opted for direct acquisition to gain hands-on experience. No immediate plans exist to add Bitcoin to official reserves due to its perceived immaturity.

This move positions the CNB as a pioneer among European central banks, leveraging the Czech Republic’s non-adoption of the euro for greater regulatory flexibility within the EU. It aligns with growing institutional interest in crypto, though the CNB emphasized compliance with Czech and EU regulations.

The announcement has sparked discussions on central bank digital asset adoption, with some viewing it as a signal for tokenized securities in public finance. As the first central bank to publicly disclose a direct Bitcoin purchase outside of seized assets or indirect ETFs, the CNB’s move normalizes crypto for sovereign institutions.

This could accelerate adoption, with analysts predicting it as a “turning point” for global Bitcoin integration into national strategies. Bitcoin’s price, already hovering above $100,000, saw a modest uptick post-announcement, reflecting heightened investor confidence in institutional inflows.

Governor Aleš Michl’s earlier proposal for up to 5% of reserves ~$7.3 billion in Bitcoin highlights potential for larger allocations. If the pilot succeeds, it could inspire similar tests elsewhere, echoing El Salvador’s full adoption but in a more measured EU context.

The portfolio—comprising Bitcoin for volatility/decentralization, a USD-pegged stablecoin and a tokenized deposit—focuses on practical workflows like custody, key management, AML compliance, and crisis simulations. Over 2–3 years, the CNB plans to share findings publicly, potentially establishing best practices for tokenizing assets like Czech bonds.

This could streamline future integrations, such as seamless koruna-based purchases of tokenized securities alongside everyday payments. By exploring blockchain’s role in payments, the CNB is preparing for a tokenized economy. Michl envisions “one-tap” transactions for everything from coffee to bonds, reducing barriers for retail investors and enhancing efficiency in a post-euro Czech system.

The Czech Republic’s non-euro status grants regulatory flexibility, allowing this pilot despite ECB President Christine Lagarde’s dismissal of Bitcoin as having “zero” value and warnings against reserve inclusion. Reactions on X describe it as “heroic,” potentially pressuring the ECB to revisit crypto policies and fostering debate on EU-wide standards.