Czech National Bank Considers Bitcoin: A Step Toward Diversifying Reserves and Embracing Digital Assets

The Czech National Bank (ČNB) is looking into utilizing Bitcoin as a diversification tool for its foreign exchange reserves. According to recent interviews conducted on January 6, 2025, Governor Aleš Michl said that the central bank is interested in the asset but will only buy "just a few" Bitcoins instead of many.

Focus on Conventional Assets

Michl added that the bank should diversify its assets, which it currently holds in the form of stocks, bonds, gold, and cash deposits. It plans to add 100 tons of gold in its reserves within the next four years, showing the bank's core interest in keeping traditional assets in its portfolio. Any move towards Bitcoin will need a consensus of the seven-person board. There is no intention to buy Bitcoin, but its integration into the reserve will continue to be debated.

Crypto Law Support

The Czech Republic passed a law that excludes capital gains tax on long-term crypto investments. This will most likely open up a friendlier space for cryptocurrency investment. Michl confessed that even if the underlying Bitcoin technology is vague, it will be a useful diversification strategy against traditional assets.

Caution Over Digital Assets

This move by the ČNB mirrors a trend for central banks globally as they revise their reserve strategies to embrace digital assets. It puts the Czech Republic in the ranks of just a few countries that are now contemplating Bitcoin within national reserves, signaling an uptrend in acceptance of cryptocurrencies within the traditional financial structure.