Czech Central Bank Takes the Leap: $1 Million Invested in Bitcoin and Stablecoins

The Czech National Bank announced on Thursday that it would invest $1 million in Bitcoin and a handful of dollar-backed stablecoins, marking the first time a central bank has purchased Bitcoin directly. The purchase, approved on October 30, 2025, aims to let the bank gain practical experience holding digital assets and evaluate the potential role of Bitcoin in diversifying its reserves. According to CNB Governor Aleš Michl, the bank's goal is to test decentralized Bitcoin from the central bank's perspective and to assess its potential benefits. The investment will be held apart from the country's international reserves. Michl stated that the bank wants to gain a deeper understanding of how cryptocurrencies operate and their potential impact on the financial system. "The aim was to test decentralized Bitcoin from the central bank's perspective and to evaluate its potential role in diversifying our reserves," Michl said in a statement. The Czech National Bank's decision to invest in Bitcoin comes during an up-and-down year for the digital currency, which reached an all-time high price of about $125,000 last month but has since dipped about 19% to its current price of around $101,000. The Czech Republic's central bank is not the first to explore the use of cryptocurrencies, but it is the first to purchase Bitcoin directly. Other countries, such as Sweden and Norway, have already made owning crypto part of their economic strategies. The European Central Bank has also been studying the potential benefits and risks of cryptocurrencies, but it has not made any direct investments. The Czech National Bank's decision to invest in Bitcoin has been met with interest from other central banks and financial institutions. "This is a significant development, and we will be watching closely to see how it unfolds," said a spokesperson for the European Central Bank. The bank's investment in Bitcoin is also seen as a step towards greater financial inclusion and innovation in the Czech Republic. The Czech National Bank's investment in Bitcoin is a relatively small portion of its overall reserves, which stand at around $50 billion. However, the move is seen as a significant step towards greater adoption of cryptocurrencies in the financial sector. As the global financial landscape continues to evolve, it remains to be seen how other central banks and financial institutions will respond to the Czech National Bank's decision to invest in Bitcoin.