In a significant move to deepen its understanding of cryptocurrencies, The Czech National Bank (CNB) announced on Thursday its decision to invest $1 million in Bitcoin alongside several dollar-backed stablecoins. Approved on October 30, 2025, this purchase aims to provide the bank with hands-on experience in handling digital assets, although it will be maintained separately from the country’s international reserves.
CNB Governor Aleš Michl elaborated on the initiative, emphasizing the intent to explore decentralized Bitcoin from a central banking perspective. He noted that this endeavor will help evaluate Bitcoin’s potential role in diversifying national reserves.
This investment comes at a turbulent time for Bitcoin, which has experienced a volatile year. After peaking at approximately $125,000 last month, the cryptocurrency has since fallen by 19%, currently valued at around $101,000.
By making this investment, the Czech Republic becomes the first country to directly purchase Bitcoin through its central bank, joining a small group of nations that have integrated cryptocurrency into their economic strategies. Notably, El Salvador made history in 2021 by becoming the first country to recognize Bitcoin as legal tender. Additionally, Bhutan has emerged as one of the largest sovereign holders of Bitcoin, and Kazakhstan has unveiled plans to establish a Bitcoin sovereign wealth fund. In the U.S., President Trump has proposed creating a strategic Bitcoin reserve, funded not by direct purchases but through proceeds from forfeitures and criminal seizures.
The CNB emphasized that the investment amount in digital assets will remain fixed and stated that a public assessment of the project is expected within the next two to three years.
As a member of the European Union, the Czech Republic continues to utilize its own currency, the koruna. The central bank has indicated its commitment to maintaining a strong currency while engaging in internal discussions regarding the future of payment systems. Michl expressed an optimistic outlook, suggesting that future developments could allow for seamless transactions using the koruna for various investment opportunities, making financial assets more accessible to the general public.
“Let’s be more forward-thinking, more visionary,” Michl stated. He envisions a future where citizens can easily use the koruna to acquire tokenized assets, such as Czech bonds, with the convenience akin to making everyday purchases, potentially revolutionizing the investment landscape.
