Czech Central Bank to Consider $7 Billion Bitcoin Reserve: Report

The head of the Czech central bank is about to make a move that would have been unthinkable just a few years ago—he wants to add Bitcoin to the nation's reserves.

Czech National Bank (CNB) Governor Aleš Michl will present a proposal this Thursday that could see up to $7 billion of the country's wealth flow into crypto, potentially making it the first Western central bank to hold digital assets.

"For the diversification of our assets, Bitcoin seems good," Michl said in an interview with the Financial Times, acknowledging his stance differs from other central bankers when it comes to crypto matters.

The proposal follows increased institutional interest in Bitcoin after BlackRock and other firms launched spot ETFs. Michl also cited U.S. President Donald Trump's crypto-friendly stance and the growing influence of digital asset executives in his administration.

This is not the first time that the country has made crypto headlines. In December, its parliament unanimously passed legislation exempting Bitcoin held over three years from capital gains tax.

Earlier this month, Michl was quoted as saying that he had "considered" adopting Bitcoin as a foreign exchange reserve.

Broader policy moves in the Eurozone are also shaping up in the background.

Last week, the European Central Bank signaled its readiness for multiple rate cuts in 2025, with ECB President Christine Lagarde indicating a "gradual" approach toward monetary easing, according to reports from Reuters and CNBC out of Davos.

Policymakers across Europe are slated to approve the cuts on January 30.

The CNB has indeed carved out a niche in central banking with its investment strategies. Explaining its unique approach, Michl explained how the CNB's allocations are different from other central banks.

Currently, the CNB allocates 22% of its portfolio to equities—primarily set on U.S. tech stocks like Apple and Microsoft.

This is more than what most other central banks allocate, as they typically play it safe with government bonds. They're planning to ramp this up to 30% by 2029, betting on stocks to boost returns, Michl shared in the interview.

Meanwhile, most central banks remain skeptical of crypto investments.

The U.S. Federal Reserve confirmed in December it holds no Bitcoin, while European Central Bank officials maintained in February last year that the "fair value" of Bitcoin is "still zero," reacting to the approval of spot Bitcoin ETFs a month prior.

Given these, Michl acknowledged potential risks, noting Bitcoin could end up worthless or achieve "absolutely fantastic value."

Michl said the move is aimed at diversifying reserves rather than just speculating.

“My goal is to diversify the portfolio, so if Bitcoin is good, then let’s have it,” he said.

The bank did not immediately return Decrypt's request for comment.

Edited by Stacy Elliott.