Czech Central Bank Becomes First Central Bank to Buy Bitcoin
The Czech National Bank (CNB) has included Bitcoin, a USD stablecoin, and a tokenized deposit in a $1 million pilot portfolio to gain practical experience with blockchain-based assets. Approved on October 30, the project aims to explore how these assets might reshape payments and financial systems. CNB Governor Aleš Michl first proposed the idea, despite criticism, to evaluate Bitcoin’s potential role in diversifying the bank's reserves. The acquisition is separate from the CNB’s existing international reserves and will not be expanded.
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Bitcoin Makes History on Central Bank Balance Sheet
It's another milestone for Bitcoin (BTC), which for the first time has apparently been included on a central bank's balance sheet. On Thursday, the Czech National Bank (CNB) announced the creation of a $1 million test portfolio that includes Bitcoin, a USD stablecoin, and a tokenized deposit.
Purpose of the Pilot Program
Approved by the bank board on October 30, the pilot program is designed to give the central bank hands-on experience with blockchain-based assets. The CNB noted that such assets could potentially reshape how payments and financial systems operate in the future.
Limited Investment Approach
The total investment amount will not be actively increased, according to the CNB. The acquisition of these blockchain assets was made outside of the bank's existing international reserves, signaling a cautious approach to this experimental effort.
The Governor's Vision
CNB Governor Aleš Michl initially proposed the idea of including Bitcoin in January of this year, despite criticism from ECB President Christine Lagarde. His suggestion highlighted the Czech Republic's independence within the EU, as it has not adopted the euro, unlike many of its neighboring countries.
Future Goals and Objectives
Michl elaborated further in today's announcement, stating: "I came up with the idea of creating a test portfolio in January 2025. The aim was to test decentralized Bitcoin from the central bank’s perspective and to evaluate its potential role in diversifying our reserves." This reflects an effort to explore innovative financial instruments for potential future use.