The Czech National Bank concluded its pioneering test of bitcoin for sovereign reserves after purchasing $1 million in BTC, ultimately deeming the cryptocurrency too risky despite finding it more efficient than traditional assets. Governor Ales Michl had proposed allocating up to 5% of the bank's $180 billion reserves to bitcoin and found that a 1% allocation would increase returns while maintaining overall risk levels due to bitcoin's low correlation with other assets. The bank became the first central bank globally to purchase bitcoin in November 2025, moving further than peers despite opposition from institutions like the European Central Bank, which argues bitcoin lacks sufficient liquidity and security. The test attracted significant attention, with Michl delivering a keynote on the topic at Bitcoin 2026 in Las Vegas, though the bank's final determination against adoption may influence other central banks considering similar diversification strategies.
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