Czechia Buys $1 Million In Bitcoin –– But It’s Not Building a Reserve

The Czech National Bank (CNB) has entered the digital asset market for the first time on Thursday, allocating $1 million to build a blockchain-based pilot portfolio. This acquisition was conducted separately from the bank’s official international reserves.

The CNB emphasized that it has no intention of adding Bitcoin or other digital assets to its official international reserves. Instead, it made this move to prepare for a future in which digital currencies are more widely used.

Along with its Bitcoin exposure, the CNB’s pilot portfolio will also hold a USD-denominated stablecoin and a tokenized deposit recorded on the blockchain. 

The bank noted that the size of this portfolio will remain fixed. Its goal is to gain hands-on experience managing digital assets.

The CNB will examine how to manage private keys and set up multi-level approvals. It will also conduct crisis simulations, review security procedures, and verify compliance with AML regulations.

The Czech National Bank has purchased digital assets for the first time in its history.