The Czech Republic’s central bank has made its first formal move into digital assets. The Czech National Bank (CNB) announced that it has created a one million dollar portfolio containing Bitcoin, US dollar backed stablecoins, and tokenized bank deposits. The pilot will run for several years and is designed to give policymakers hands on experience with digital asset custody, risk controls, and transaction processes.
The CNB said the investment is part of a broader effort to understand how public institutions could use crypto in a controlled environment. Officials will use the portfolio to test the operational workflow for acquiring and storing digital assets, as well as to run crisis simulations and design anti money laundering procedures. The bank stressed that this is an experiment rather than a shift in reserve policy, although it acknowledged that the lessons learned could later support routine use.
A step toward long term crypto integration
The announcement follows a policy debate earlier this year in which the CNB explored the possibility of allocating a portion of its national reserves to Bitcoin. The idea drew attention across Europe but was quickly rejected by the European Central Bank, which retains supervisory authority over EU members that have not adopted the euro. Despite this, the CNB said the current testing framework could be extended into future reserve operations if approved at the European level.
Governor Aleš Michl said the bank expects to publish a full assessment of the pilot within two to three years. He noted that tokenized financial instruments and retail payments could become common in the Czech economy and that the bank aims to understand the related technological and regulatory implications. Michl added that the long term goal is to ensure citizens and institutions can use tokenized money and assets as easily as traditional financial products.
The CNB’s internal report accompanying the announcement focused heavily on Bitcoin’s development over the past decade. It highlighted that the asset has reached a level of market maturity that makes controlled testing appropriate, even though volatility and compliance challenges persist. The report also pointed to recent pro crypto signals from the United States, arguing that global regulatory attitudes have become more supportive.
The pilot is intended to help the CNB build operational readiness as Europe continues to debate how digital assets should be regulated and integrated into its financial system. While no national crypto reserve is planned in the short term, the Czech experiment suggests that central banks across Europe are increasingly preparing for a future in which digital assets play a more visible role.