Finance

Czech National Bank Dives into Crypto: How a $1M Bitcoin Test Portfolio Could Reshape Reserve Strategies

Czech National Bank invested $1M in digital assets, exploring blockchain’s impact on finance.

November 13, 2025, 1:52 PM

Giant inflatable Bitcoin symbol placed in front of the Czech National Bank (ČNB) building entrance.

A giant Bitcoin symbol placed outside the ČNB building, symbolizing the contrast between traditional and digital finance. By xlup / Shutterstock.com.

Executive Summary

The Czech National Bank (CNB) has launched a $1 million pilot project to invest in a test portfolio of bitcoin, an unnamed U.S. dollar stablecoin, and a tokenized deposit.

The pilot project aims to provide hands-on experience, study operational and regulatory implications of blockchain-based investments, and test decentralized bitcoin from a central bank’s perspective, with an assessment due in two to three years.

In conjunction with the digital asset portfolio, the CNB established an internal innovation hub called “CNB Lab” to explore emerging technologies like blockchain and AI, underscoring its commitment to future financial innovations.

The Story So Far

The Czech National Bank (CNB) initiated its pilot digital asset portfolio to gain hands-on experience and study the operational and regulatory implications of blockchain-based investments, driven by the increasing integration of digital assets into institutional portfolios and their potential for wider acceptance, as part of a broader commitment to understanding future financial innovations through initiatives like its new CNB Lab.

Why This Matters

The Czech National Bank’s pilot digital asset portfolio and “CNB Lab” initiative signal a proactive, hands-on approach by a central bank to gain practical experience with cryptocurrencies and blockchain technology. This move, while not immediately impacting monetary policy or reserve strategy, provides crucial insights into the operational and regulatory challenges of digital assets, potentially influencing future central bank strategies regarding financial innovation, reserve diversification, and the integration of emerging technologies.

Who Thinks What?

The Czech National Bank (CNB) has initiated a $1 million pilot project into digital assets, including bitcoin, to gain hands-on experience, study the operational and regulatory implications of blockchain-based investments, and evaluate their potential role in diversifying reserves, while also launching its CNB Lab to explore emerging financial technologies.

The CNB emphasizes that this digital asset investment does not signify an immediate shift in its monetary policy or foreign exchange reserve strategy, stating there are no current plans to integrate digital assets into its international reserves and cautioning about the significant volatility and risks associated with bitcoin.

The Czech National Bank (CNB) has initiated its first foray into digital assets, allocating $1 million to a test portfolio comprising bitcoin, an unnamed U.S. dollar stablecoin, and a tokenized deposit. Approved by the Bank Board on October 30 and announced on November 13, 2025, the pilot project aims to provide hands-on experience and study the operational and regulatory implications of blockchain-based investments, though the bank emphasized no immediate plans to integrate digital assets into its international reserves.

Pilot Project Details

The $1 million test portfolio was established outside of the CNB’s international reserves and will not be actively increased. CNB Governor Aleš Michl stated that the purpose is to test decentralized bitcoin from a central bank’s perspective and evaluate its potential role in diversifying reserves. The bank plans to share its experiences and present an overall assessment in approximately two to three years.

Motivation and Scope

Governor Michl first proposed the pilot project in January 2025. An internal analysis preceding the decision highlighted the increasing integration of digital assets into institutional portfolios and their potential for wider acceptance. The CNB will use this portfolio to test the complete operational chain for holding digital assets, including technical key management, multi-level approval processes, security protocols, and anti-money laundering (AML) compliance.

The experiment is also designed to compare various blockchain-based instruments, such as bitcoin and tokenized deposits, to understand their technical and accounting treatments. This includes studying how to accurately record and audit such holdings and ensure secure transaction settlement.

CNB Lab and Broader Innovation

In conjunction with the digital asset portfolio, the CNB launched a new internal innovation hub called “CNB Lab.” This initiative will explore emerging technologies with potential impacts on financial markets and central banking, including applications of blockchain, artificial intelligence tools, and instant payment systems. The central bank also published an accompanying document titled “Analysis of Possible Investment in Other Asset Classes: Part I – Digital Assets.”

Governor Michl cautioned potential investors about the inherent volatility of bitcoin, stating, “The value of bitcoin may fluctuate substantially. No investor should buy bitcoin without being aware of the significant risks involved.”

Key Takeaways

The Czech National Bank’s $1 million digital asset test portfolio represents a strategic move to gain practical experience with cryptocurrencies and blockchain technology. This initiative, alongside the new CNB Lab, underscores the bank’s commitment to understanding future financial innovations. However, the CNB has clearly stated that this investment does not signify a shift in its monetary policy or foreign exchange reserve strategy at this time.