The Czech National Bank invested $1 million to test a crypto reserve that includes Bitcoin, a stablecoin and tokenized bank deposits.
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The Czech National Bank (CNB), the central bank of the Czech Republic, announced on Thursday the purchase of cryptocurrencies worth $1 million for the first time to test a digital asset reserve and gain “practical experience” in handling digital assets.
CNB’s reserves will include Bitcoin (), one US dollar-pegged stablecoin and one tokenized bank deposit, according to the .
The bank said that while the test is and prepare the bank for international adoption to remain globally competitive, it is not planning to adopt a digital asset reserve in the “near future.” CNB governor Aleš Michl said:
“It is realistic to expect that, in the future, it will be easy to use the koruna to buy tokenized Czech bonds and more — with one tap an espresso; with another an investment such as a bond or another asset that used to be the preserve of larger investors.”
The Bank also launched the CNB Lab Innovation Hub, an initiative to test blockchain and other financial technologies for use in commerce and to help adapt monetary policy to rapid technological change.
The announcement reflects the growing institutional adoption of digital assets by central banks and nation-states, as the world .
Related:
The CNB in January to diversify its international asset reserves, following the pro-crypto regulatory pivot in the United States.
Michl , or 5% of the bank’s reserves, to seed a Bitcoin reserve during the same month, but the plan wasn’t approved by the CNB board.
“An asset under consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio,” Michl at the time, adding that BTC could “one day be worth either zero or a huge amount.”
In July, the CNB , a major crypto exchange, to its investment portfolio, valued at about $18 million at the time, and over $15.7 million at the time of this writing.
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