CNB considers shifting up to 5% of Czech reserves into Bitcoin

Czech National Bank (CNB) Governor Aleš Michl will reportedly propose adding Bitcoin to the countrys reserve assets, Financial Times reported on Jan. 29.

If approved, his plan would see the bank eventually allocate as much as 5% of its $146.13 billion reserves to Bitcoin, moving beyond its traditional gold and US dollar holdings.

Earlier this month, he hinted at potential adjustments to the banks reserve strategy, suggesting a broader approach to asset allocation.

Bitwise‘s European Head of Research, André Dragosch, said the proposed investment could amount to $7.3 billion in Bitcoin. This would place CNB’s BTC reserves above its $4.3 billion gold holdings and account for roughly 5.3 months of newly mined Bitcoin.

Dragosch said:

“Czech central bank holds around 146 billion USD in official reserve assets of which 138 billion USD are FX reserves and 4.3 billion USD are gold. They plan to invest up to 5% of these reserves into BTC (approximately 7.3 billion USD ~71,568 BTC).”

Why Czechia is turning to Bitcoin

CNBs Michl sees Bitcoin as a diversification tool amid rising institutional adoption. He pointed to growing interest in crypto-related investment products, particularly after asset managers like BlackRock launched BTC exchange-traded funds (ETFs).

He also noted shifting US policies, including President Donald Trumps deregulation efforts and increased engagement between crypto firms and policymakers. Under the Trump administration, the US has adopted a more friendly disposition to the emerging industry and recently signed an executive order designed to make America a leader in the sector.

Michl said:

“For the diversification of our assets, Bitcoin seems good…Those [Trump] guys can now kind of create some bubble for bitcoin, but I think the trend would be an increase without those guys as well, because its an alternative [investment] for more people.”

Although Bitcoin remains volatile, Michl believes its rising adoption justifies its inclusion in national reserves. He acknowledged the risks but emphasized the CNBs experience in managing fluctuating assets.

“It‘s possible to have a big range of outcomes, that bitcoin will have a value of zero or an absolutely fantastic value . . . but in our history we have also had some stocks like Enron or the payment company Wirecard, so we have some experience with bad investments, so, yes, I’m ready [for a possible Bitcoin collapse],” he said.