The Czech National Bank (CNB) is considering adding Bitcoin into its foreign exchange reserves as part of a larger diversification strategy. On January 30, Governor AleÅ¡ Michl will propose to the bank’s board that it allocate up to 5% of its $146 billion reserves to Bitcoin, totaling around $7.3 billion.
If the initiative is accepted, the CNB will be the first European central bank to do so, paving the way for other banks to consider digital assets as a reserve component. The idea has aroused debate regarding the possible impact on the Bitcoin market, as the investment would amount to more than five months’ worth of newly produced Bitcoin.
Governor Michl has already shown an interest in Bitcoin as a reserve asset, implying that adding the cryptocurrency may help the bank’s portfolio diversification. However, he cautioned that the ultimate choice would require thorough consideration and board approval.
Earlier statements by CNB officials indicated that Bitcoin was not being considered for the bank’s reserves. Instead, the institution prioritized increasing its gold holdings, with the goal of reaching 5% of total assets by 2028. The shift in mood coincides with rising institutional interest in Bitcoin after the launch of spot Bitcoin ETFs and more regulatory certainty in foreign markets.
While some politicians are cautious about central banks holding digital assets, Michl acknowledges both the hazards and the possible benefits. He argued that long-term portfolio diversification is the goal, rather than speculative profit.
As Bitcoin gains traction among institutional investors, the CNB’s decision could encourage other central banks to pursue similar policies, possibly changing the role of digital assets in global finance. Market investors will be eagerly watching the conclusion of the board meeting to see if the Czech Republic will lead the way in central bank Bitcoin adoption.
