Czech National Bank Buys $1 Million in Bitcoin: First-Ever Crypto Experiment

Czech National Bank Bitcoin purchase made headlines, as the central bank announced its inaugural acquisition of $1 million in digital assets—including Bitcoin, a USD-pegged stablecoin, and a tokenized deposit—for a segregated experimental portfolio. This bold move, proposed by Governor Aleš Michl and approved in October 2025, aims to evaluate blockchain technology, custody solutions, and regulatory compliance over a two- to three-year horizon.

The Experimental Portfolio: Bitcoin and Stablecoins Enter Central Banking

The Czech National Bank’s (CNB) $1 million allocation forms a standalone test portfolio, explicitly separated from official foreign exchange reserves and monetary policy operations. The basket includes:

• Bitcoin (BTC): As a volatile but established digital asset.
• USD-pegged stablecoin: For stable value benchmarking.
• Tokenized deposit: To assess on-chain banking instruments.

Governor Michl emphasized the initiative’s exploratory nature: “This is a controlled experiment to understand blockchain’s potential and risks in a real-world setting, without impacting our core mandates.” The CNB stressed Bitcoin’s high volatility as a key risk factor under observation, with no intention to scale holdings based on short-term results.

• Portfolio Size: $1 million; fully segregated.
• Duration: 2-3 years for evaluation.
• Focus: Custody, compliance, and technology testing.

Context: Contrasting ECB Stance on Crypto Reserves

The CNB’s experiment contrasts with European Central Bank President Christine Lagarde’s January 2025 rejection of Bitcoin for EU central bank reserves, citing volatility and lack of intrinsic value. While the ECB explores a digital euro for 2028-2029, the CNB’s hands-on approach reflects growing curiosity among national banks. Similar pilots in Switzerland (SNB’s wholesale CBDC) and Singapore highlight a global trend of cautious crypto engagement.

The CNB clarified: “This is not an investment strategy but a learning exercise—results will inform future policy without committing reserves.”

Market Reaction and Broader Implications

Bitcoin briefly spiked 1.2% to $106,800 on the news before settling, with analysts viewing the purchase as symbolic rather than market-moving given the modest size. The move adds to 2025’s institutional momentum, following El Salvador’s treasury buys and corporate treasuries like Strategy Inc. (641,692 BTC). For central banks, it signals a shift from outright dismissal to structured experimentation amid $2.1 trillion crypto market cap.

2025 Bitcoin Central Bank Adoption Prediction: 5-10 Nations Testing

Bitcoin central bank adoption prediction for 2025: 5-10 nations launching pilots. Bull catalysts: CNB precedent; bear risks: Volatility testing mainstream acceptance.

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In summary, the Czech National Bank’s $1 million Bitcoin experiment—alongside stablecoins and tokenized deposits—marks a pioneering step for central banks, testing blockchain’s viability without reserve risk in 2025’s evolving landscape.