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The Czech National Bank (CNB), the central bank of the Czech Republic, announced on Thursday the purchase of $1 million worth of cryptocurrencies for the first time to test a digital asset reserve and gain “practical experience” in digital asset management.
CNB’s reserves will include Bitcoin (BTC), a stablecoin pegged to the US dollar and a tokenized bank deposit, according to a announcement.
The bank said that while the test is meant to study crypto and prepare the bank for international adoption to be competitive in the world, it is not planned to adopt a digital asset reserve in the “near future”. CNB Governor Aleš Michl said:
“It is realistic to expect that, in the future, it will be easy to use the crown to buy tokenized Czech bonds and more – with one touch an express; with another an investment like a bond or another asset that was the largest investor reserve.
The Bank also launched the CNB Lab Innovation Hub, an initiative to test blockchain and other financial technologies for use in trade and to help adapt monetary policy to rapid technological change.
The announcement reflects the growing institutional adoption of digital assets by central banks and nation-states, such as the world switch to onchain, Internet-first finance.
Related: Taiwan’s prime minister promises a Bitcoin reserve valuation report by the end of 2025
CNB centimeters towards crypto
The CNB started exploring BTC in January to diversify its international asset reserves, following the pro-crypto regulatory pivot in the United States.
Michael offered to buy up to $7.3 billion BTCor 5% of the bank’s reserves, to seed a Bitcoin reserve during the same month, but the plan has not been approved by the CNB.
“An asset under consideration is Bitcoin. It currently has zero correlation with bonds and is an interesting asset for a large portfolio,” Michl. he said at the time, adding that BTC could “be worth a day or zero or a huge amount.”
In July, the CNB add 51,732 shares of Coinbasea major crypto exchange, to its investment portfolio, valued at about $18 million at the moment, and more than $15.7 million at the time of this writing.
Magazine: The United States risks being “front run” in the Bitcoin reserve by other nations: Samson Mow
