Czech Bank Buys $1M in Crypto for Test Portfolio

The Czech National Bank announced on Thursday that it has purchased digital assets worth 1 million as part of a test portfolio, marking the central bank's first direct exposure to cryptocurrencies. The acquisition, which includes Bitcoin, a U.S. dollar-pegged stablecoin and a tokenized bank deposit, aims to provide practical experience in managing blockchain-based assets without altering the institution's official reserves.

The portfolio was acquired through exchanges, though the bank did not disclose specific counterparties or execution details. Officials emphasized that the holdings, valued at a fraction of the bank's 140 billion in foreign reserves, will remain separate and stable during the two- to three-year pilot program. The initiative focuses on testing operational processes, including custody, key management, multisignature approvals, security protocols and compliance with anti-money laundering regulations. Technical teams will simulate crisis scenarios and audit on-chain transactions to evaluate how digital assets integrate with traditional financial systems.

The project originated from internal discussions that began in January 2025, when Governor Aleš Michl proposed...