The Czech National Bank has added cryptocurrencies to its holdings for the first time. The central bank announced a $1 million test portfolio today (Thursday) that includes Bitcoin, a US dollar-pegged stablecoin, and a tokenized deposit.

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The bank has also added shares in Coinbase. Bitcoin is reportedly appearing on a central bank balance sheet for the first time.

Czech Bank Gains Operational Independence Testing

The portfolio was approved by the CNB board on October 30. The bank said the pilot is intended to give staff practical experience with blockchain-based assets. The investment will not be actively increased and was made outside the CNB’s existing international reserves.

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CNB Governor Aleš Michl first suggested a Bitcoin investment in January. The proposal faced criticism from European Central Bank officials at the time. The Czech Republic is an EU member but has not adopted the euro, giving its central bank some operational independence.

CNB Lab Studies Blockchain Applications

Michl said the test portfolio will evaluate Bitcoin’s potential role in reserve diversification and examine possible uses for tokenized Czech financial instruments. The CNB has also launched the CNB Lab Innovation Hub to study blockchain and other financial technologies, including applications in monetary policy and commerce.

CNB Expands Crypto Exposure, Pilot Continues

Earlier proposals by Michl to purchase larger amounts of Bitcoin were not approved by the CNB board.

The CNB emphasized that the pilot does not indicate plans to adopt a permanent digital asset reserve in the near term. The initiative reflects growing institutional interest in cryptocurrencies and the use of blockchain technology by central banks globally.

New Czech Law Clarifies Crypto Banking Rules

Separately, the Czech Republic has enacted a new cryptocurrency law that aligns the country with the EU’s Markets in Crypto-Assets framework. The legislation clarifies tax and compliance requirements and allows licensed crypto companies to access bank accounts.

The law aims to provide a more predictable regulatory environment for digital asset businesses and could make the country more accessible for blockchain-based firms.

Source: Finance Magnates