The bank’s board will decide the next steps based on the analysis, with no changes made until the process is concluded.
The Czech National Bank (CNB) has approved a proposal to evaluate the inclusion of Bitcoin in its monetary reserves. The decision was announced on January 30 by Governor Aleš Michl.
The proposal calls for an in-depth analysis to assess the potential diversification of the bank’s reserves, which amount to approximately $146 billion, with a possible allocation of up to 5% in Bitcoin. According to CNB estimates, such a strategy applied over the past decade would have increased annual returns by 3.5%, though it would have also doubled portfolio volatility.
In an official statement, the CNB said:
“Over the past two years, our reserve management strategy has shifted toward greater investment diversification.”
Governor Michl, who comes from an investment banking background, has expressed an alternative approach, calling himself a “pioneer” compared to his counterparts at other central banks.
The bank clarified that no changes will be implemented until the analysis is complete, and any new allocation will be appropriately documented in quarterly and annual reports.
If the plan materializes, the Czech Republic would become the first country in the world whose central bank officially holds Bitcoin in its reserves. Michl himself predicts that in the next five years, other central banks may follow this example.
