Czech central bank eyes holding up to 5% of reserves in Bitcoin: report

Governor Aleš Michl plans to propose a Bitcoin investment to the Czech National Bank’s board, potentially allocating up to 5% of reserves to the digital asset.

Czech National Bank Governor Aleš Michl is making a bold move, one no other Western central bank has taken so far: he wants to put Bitcoin (BTC) in the country’s reserves. If approved, up to 5% of the Czech National Bank’s €140 billion in reserves could be allocated to Bitcoin.

Michl plans to present his proposal to the CNB board on Jan. 30, telling the Financial Times’ Raphael Minder that Bitcoin “seems good” for the “diversification” of the bank’s assets.

He acknowledged the cryptocurrency’s volatility but pointed to its rising investor interest, especially after BlackRock, the world’s largest asset manager, launched spot Bitcoin exchange-traded funds in 2024.

“Of course, if you compare my position with other bankers, then I’m the one entering the jungle, or the pioneer. I used to run an investment fund, so I’m a typical investment banker I would say, I like profitability.”

Aleš Michl

Michl admitted Bitcoin’s value could go to zero but also sees its potential as CNB’s data suggests that if 5% of its reserves had been in Bitcoin over the past decade, annual returns would have risen by 3.5% points — but volatility would have doubled.

If the plan moves forward, CNB could become the first Western central bank known to hold Bitcoin, joining El Salvador, which holds 6,048 BTC worth about $619 million, per data from Bitcoin Treasuries.

The United States, in the meantime, is also evaluating the feasibility of the so-called “national digital assets stockpile.” While President Donald Trump recently signed an executive order to create a working group focused on cryptocurrencies, the order does not suggest the U.S. government should prioritize holding Bitcoin in its reserves.