Bitcoin News Today: Czech Central Bank Defies ECB Skepticism with Bitcoin Experiment

The Czech National Bank (CNB) has become the first central bank to directly acquire Bitcoin, launching a $1 million "test portfolio" of digital assets to explore their potential role in central banking. The portfolio includes Bitcoin (BTC), a U.S. dollar-pegged stablecoin, and a tokenized bank deposit, marking a significant step in the institutional adoption of cryptocurrencies according to reports.

The initiative, approved by the CNB board on October 30, 2025, aims to test the technical, legal, and operational processes of managing blockchain-based assets. Governor Aleš Michl, who proposed the project in January 2025, emphasized that the test portfolio is designed to evaluate Bitcoin's potential for diversifying the bank's reserves and preparing for future financial innovations according to market analysis. "The aim was to test decentralized bitcoin from the central bank's perspective and to evaluate its potential role in diversifying our reserves," Michl stated, noting that the CNB will share its findings over the next two to three years according to reports.

The CNB clarified that the $1 million investment, made outside its existing international reserves, will not be actively increased and is not indicative of an immediate shift toward Bitcoin-backed reserves. The bank stressed that the portfolio's small size ensures market volatility will have no material impact on its financial performance according to market analysis. Additionally, the CNB has launched the CNB Lab innovation hub to test emerging technologies, including blockchain and artificial intelligence, to adapt monetary policy and payment systems to rapid technological changes according to reports.

While the move reflects growing institutional interest in digital assets, it also highlights the cautious approach of central banks. The CNB noted that Bitcoin is not currently classified as a reserve asset by the European Central Bank (ECB) or the International Monetary Fund (IMF), despite its board's earlier proposal to allocate up to 5% of its reserves to Bitcoin according to reports. Michl also acknowledged that the Czech Republic's non-adoption of the euro granted the CNB a degree of independence to pursue this initiative, contrasting with the ECB's skepticism according to reports.

The test portfolio will examine key processes such as key management, multi-level approvals, crisis response, and anti-money laundering compliance. The CNB emphasized that maintaining in-house expertise and operational readiness are central to the project, which will also compare different types of blockchain assets and their properties according to market analysis.

This development aligns with broader trends in central bank experimentation with digital assets. For instance, Taiwan's government has pledged to assess Bitcoin as a reserve asset by year-end, while other nations are exploring tokenized bonds and central bank digital currencies (CBDCs). However, the CNB's move stands out as the first direct Bitcoin purchase by a central bank, signaling a potential shift in how institutions approach cryptocurrency.