Czech Central Bank Evaluates Bitcoin as a Reserve Asset, No Immediate Plans

• The Czech National Bank is assessing Bitcoin as a reserve asset, but no decision has been made.
• Governor Ales Michl confirmed that Bitcoin’s low correlation with bonds makes it an asset worth analyzing.
• The Bank Board will decide, but Bitcoin’s volatility remains a major concern.

The Czech National Bank (CNB) has confirmed that it is assessing Bitcoin as a potential reserve asset, though Governor Aleš Michl has clarified that no immediate plans are in place for an official Bitcoin allocation.

While speculation has grown over Czechia potentially following El Salvador’s Bitcoin reserve strategy, Michl emphasized that Bitcoin remains under review rather than part of the CNB’s official reserve diversification plan.

Bitcoin Under Review in CNB’s Reserve Strategy

According to Financial Times journalist Raphael Minder, since taking office in July 2022, Michl has focused on stabilizing the economy after the country’s worst inflation crisis in three decades. 

With inflation peaking at 17.5% in 2022 and later stabilizing near target levels, the CNB has been gradually restructuring its reserve strategy. This includes:

• Raising gold holdings from 0% to 5%
• Allocating 30% of reserves to equities, particularly in the U.S.
• Assessing Bitcoin as part of a broader diversification effort

Michl noted that Bitcoin’s near-zero correlation with bonds makes it an interesting asset for a balanced portfolio, but he also pointed to its volatility as a major challenge for central bank holdings.

Michl: No Decision Yet, Bitcoin Still Under Analysis

Addressing speculation, Michl took to X to clarify the bank’s position. He confirmed that Bitcoin’s potential role in the CNB’s reserves is under discussion but stressed that no decision is imminent.

Related: El Salvador Nears 6,000 Bitcoin in National Reserve Growth

“Right now, it’s only at the stage of analysis and discussion. The Bank Board decides, and no decision is imminent. Thoughtful analysis is needed,” — Ales Michl noted on X. 

He further acknowledged Bitcoin’s inherent risks, stating that he had previously remarked that Bitcoin could one day be worth either zero or a huge amount.

Bitcoin’s Volatility Concerns Could Delay Any Move

Despite its potential benefits, Bitcoin’s price volatility remains a primary concern for policymakers. Its frequent price swings make it difficult to fully capitalize on its low correlation with other assets.

Michl confirmed he will ask his team to conduct a deeper evaluation of Bitcoin’s suitability as a reserve asset. However, he reiterated that this does not mean any immediate action will be taken.

Czech National Bank’s Long-Term Strategy

The Czech National Bank’s overarching goal remains price stability and sustainable economic growth. The decision to hold Bitcoin in reserves—if ever made—will require extensive research, risk assessment, and approval from the Bank Board.

Related: Trump’s Bitcoin Reserve Vision: U.S. Leadership in Digital Currency

For now, the CNB is focused on expanding its gold and equity holdings, ensuring diversification while maintaining financial stability.

Bitcoin’s Role in Global Reserves

The CNB’s evaluation of Bitcoin comes at a time when several global financial institutions are reconsidering digital assets. 

• El Salvador has already adopted Bitcoin as legal tender and holds it in its reserves.
• The U.S. has seen increasing discussions about Bitcoin’s potential role in national reserve strategies.
• Other central banks remain divided, with some exploring Bitcoin while others remain skeptical.

While Czechia is not making an immediate move, the ongoing evaluation signals that Bitcoin’s role in global finance is evolving—even among traditionally cautious institutions.