Czech National Bank Plans Multi-Billion Euro Bitcoin Purchase

The governor of the Czech National Bank reportedly wants to invest in bitcoin.

The move — involving billions of euros worth of the country’s reserves — could make this the first central bank in a Western nation to hold cryptocurrency assets, the Financial Times (FT) reported Wednesday (Jan. 29).

Governor Aleš Michl said in an interview with the FT that he would present the bank’s board with the idea of investing in bitcoin as a way of diversifying the CNB’s reserves at a Thursday (Jan. 30) meeting. If the board agrees, the bank could someday hold up to 5% of its 140 billion euros of reserves in bitcoin, said Michl.

Although he acknowledged bitcoin’s “extreme volatility” and limited record, Michl stressed growing investor interest in bitcoin since BlackRock and other companies launched bitcoin exchange traded funds (ETFs) in 2024.

He also noted President Donald Trump’s push to deregulate the crypto sector and the administration’s embrace of the industry. Trump last week issued an executive order that established a working group to study the creation of a national digital asset stockpile.

“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.”

The report points out that central banks have typically placed reserves in more conservative assets — U.S. Treasuries, bonds, equities — though none have publicly adopted crypto. Michl said he had “a totally different philosophy” about bitcoin compared to other central bank heads.

“Of course, if you compare my position with other bankers, then I’m the one entering the jungle, or the pioneer,” Michl said. “I used to run an investment fund, so I’m a typical investment banker I would say, I like profitability.”

While other central banks may be more reluctant to keep their reserves in bitcoin, they are — as covered here earlier this week — experimenting more frequently with blockchain and tokenization.

At the most recent Eurogroup meeting, the European Central Bank (ECB) offered an update on its exploration on tokenization and blockchain’s role in streamlining the wholesale settlement of transactions. The bank reported that the technology is capable of solving inefficiencies, reducing risks, and unlocking new opportunities within wholesale trade.

“This maturation of the cross-border landscape could ultimately redefine how growth-focused treasurers and CFOs manage global transactions, liquidity and risk,” PYMNTS wrote.