The Czech National Bank (CNB), the central bank of the Czech Republic, announced on Thursday the purchase of cryptocurrencies worth $1 million for the first time to test a digital asset reserve and gain “practical experience” in handling digital assets.
CNB’s reserves will include Bitcoin (BTC), one US dollar-pegged stablecoin and one tokenized bank deposit, according to the announcement.
The bank said that while the test is intended to study crypto and prepare the bank for international adoption to remain globally competitive, it is not planning to adopt a digital asset reserve in the “near future.” CNB governor Aleš Michl said:
Bitcoin average returns per holding period. Source: Czech National BankThe Bank also launched the CNB Lab Innovation Hub, an initiative to test blockchain and other financial technologies for use in commerce and to help adapt monetary policy to rapid technological change.
The announcement reflects the growing institutional adoption of digital assets by central banks and nation-states, as the world shifts to onchain, internet-first finance.
Related: Taiwan premier promises Bitcoin reserve assessment report by the end of 2025
CNB inches toward crypto
The CNB began exploring BTC in January to diversify its international asset reserves, following the pro-crypto regulatory pivot in the United States.
BTC correlation with other asset classes. Source: Czech National BankMichl proposed purchasing up to $7.3 billion BTC, or 5% of the bank’s reserves, to seed a Bitcoin reserve during the same month, but the plan wasn’t approved by the CNB board.
“An asset under consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio,” Michl said at the time, adding that BTC could “one day be worth either zero or a huge amount.”
In July, the CNB added 51,732 shares of Coinbase, a major crypto exchange, to its investment portfolio, valued at about $18 million at the time, and over $15.7 million at the time of this writing.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
Source: https://cointelegraph.com/news/czech-national-bank-tests-bitcoin-crypto-reserve-historic-buy?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
