The Czech National Bank Considers Adding Bitcoin to Its International Reserves

The Czech National Bank’s (CNB) board has approved a proposal to analyze new asset classes like Bitcoin for its international reserves management strategy

The Czech National Bank (CNB) board has approved a proposal to analyze new asset classes, including Bitcoin, for its international reserves management strategy, according to a Jan. 30 press release.

The decision, made at a Bank Board meeting on Thursday, is part of the CNB’s ongoing efforts to diversify its reserve portfolio.

While the CNB’s official statement did not explicitly mention Bitcoin, Governor Aleš Michl had already indicated his intention to explore the possibility of including the flagship cryptocurrency in the central bank’s reserves during a press conference on Wednesday.

The post-meeting press release confirms that this exploration is now officially underway.

“Based on the results of the analysis, the Bank Board will then decide how to proceed further,” the press release states. “No changes will be implemented in this area until then. Any changes in the reserve portfolio will be disclosed in the quarterly information on the CNB’s international reserves and in the CNB’s annual report.”

According to a report by the Financial Times, the CNB is considering allocating up to 5% of its $7 billion reserve to Bitcoin in an effort to diversify its portfolio. If approved, this would make the CNB the first major central bank in the West to include digital assets in its reserves.

Speaking to X after the meeting, Michl clarified that no immediate decision was being made on the matter and that the central bank would first thoroughly assess the merits and feasibility of the proposal.

However, the idea faces opposition from Finance Minister Zbyněk Stanjura, who expressed his view that Bitcoin’s price volatility renders it unsuitable for reserve holdings, according to a recent statement.

“The central bank should symbolize stability. If you look at bitcoin trading, it’s definitely not a stable asset,” Stanjura said.

Since assuming the governorship in 2022, Michl has placed a strong emphasis on diversifying reserves, notably increasing gold purchases and shifting investments toward equities.