Digital Assets Pilot

The Digital Assets Pilot module focuses on the CNB’s test portfolio of digital assets, developed to closely examine – in practice – the legal, accounting, auditing, procedural, economic and security aspects of holding and trading digital assets. These assets are increasingly becoming an integral part of the traditional financial system and are also subject to regulation by central banks. In addition to digital assets themselves, this module may in future include innovative projects related to blockchain technology.

The CNB creates a test portfolio of digital assets

The Czech National Bank (CNB) has purchased digital assets for the first time in its history. The purchase was made outside its existing international reserves. Through this USD 1 million investment, the CNB has created a test portfolio of digital assets based on blockchain. In addition to bitcoin, the portfolio will include a test investment in the form of a USD stablecoin and a tokenised deposit on the blockchain. The total amount invested will not be actively increased. The purpose of the portfolio is to gain practical experience with holding digital assets and to implement and test the necessary related processes.

The purchase was approved by the Bank Board on 30 October 2025 following a discussion of the Analysis of possible investment in other asset classes. The analysis shows that digital assets are evolving and being incorporated into the investment assets of funds and corporations, and that they may gain increasing acceptance in the future. The CNB intends to be prepared for these changes. At the same time, however, it emphasises that it is not planning to include bitcoin or other digital assets in its international reserves in the near future. The Bank Board has not made any decision yet on the other investment classes covered by the analysis. For that reason, the CNB is now publishing only the part of the analysis that focuses on digital assets (pdf, 2 MB).

“I came up with the idea of creating a test portfolio in January 2025. The aim was to test decentralised bitcoin from the central bank’s perspective and to evaluate its potential role in diversifying our reserves. The Bank Board then decided to have an analysis prepared. Subsequent internal discussions broadened the scope to include the future of payments and the tokenisation of assets. As a result, stablecoins and tokenised deposits were included alongside bitcoin. We will inform the public about our experience on an ongoing basis and present an overall assessment of the project in approximately two to three years,” said CNB Governor Aleš Michl.

“The koruna is our legal tender. The CNB will continue to strive to keep inflation low and the koruna strong. However, new ways of paying and investing will emerge rapidly in the years ahead. Thanks to the CNB, everyone now has access to instant payments and can therefore pay quickly and digitally. But let’s be more forward-thinking, more visionary. It is realistic to expect that, in the future, it will be easy to use the koruna to buy tokenised Czech bonds and more besides – 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. As a central bank, we want to test this path,” the Governor explained.

The aim is to gain practical experience with blockchain-based technologies, which may fundamentally affect the operation of the financial and payment system in the future. In the test portfolio, the CNB will test the whole chain of processes associated with the purchase, holding and management of digital assets – from technical administration of keys and multi-level approval processes, through crisis scenarios and security mechanisms, to verifying AML compliance.

The portfolio is divided into several parts: in addition to bitcoin, it will include a test investment in the form of a USD stablecoin and a tokenised deposit on the blockchain. This structure will allow the CNB to compare various types of digital assets and their different properties. The CNB will also test how to use and settle them in trading, record them in its accounts, and audit their holdings. Maintaining and developing in-house expertise is also an important factor – practical experience will enable staff to acquire and transfer knowledge across teams.

The digital assets in the test portfolio are separated from the international reserves and do not in any way affect the CNB’s ability to conduct potential foreign exchange interventions or direct monetary policy. The portfolio was purchased in a market operation as part of the CNB’s standard financial activities outside the international reserves. Given the portfolio’s marginal size, any price fluctuations will not affect the CNB’s financial performance.

The total size of the portfolio has been set at USD 1 million. Its value and composition may change somewhat over the course of the test depending on the test operations made and the market price of bitcoin. However, the total volume will not be actively increased. “It is important to emphasise that the value of bitcoin may fluctuate substantially. No investor should buy bitcoin without being aware of the significant risks involved,” the Governor added.

CNB Lab

The central bank has simultaneously launched a new project, the CNB Lab innovation hub, which is intended to oversee the testing of technologies and trends that may affect the functioning of the financial market and the conduct of monetary policy in the future. In addition to testing digital assets and blockchain solutions, the CNB Lab will try out AI tools, support innovations in the area of payments – including instant payments – and run other projects related to the digitalisation of the financial sector.

“The CNB Lab is intended as a platform to gather experience and insights from testing new technologies and trends. In addition to blockchain and digital assets, we will focus on AI tools and payment innovations. The idea is to gain hands-on experience, build professional capacity and be as well prepared as possible for what the future will bring,” said CNB Governor Aleš Michl.

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Additional questions and answers

1. Why has the CNB purchased digital assets?

The purpose of the portfolio is to gain practical experience with holding digital assets and to implement and test the necessary related processes. In the test portfolio, the CNB will test the whole chain of processes associated with the purchase, holding and management of digital assets – from technical administration of keys and multi-level approval processes, through crisis scenarios and security mechanisms, to verifying AML compliance.

2. Does this mean a change in the CNB’s international reserves management strategy?

No. The international reserves have not changed. The digital assets in the test portfolio are separated from the international reserves and do not in any way affect the CNB’s ability to conduct potential foreign exchange interventions or direct monetary policy. The portfolio was purchased in a market operation as part of the CNB’s standard financial activities outside the international reserves.

3. Why did you not buy bitcoin into the international reserves in the end?

From the central bank’s perspective, we consider it appropriate to start testing and assessing digital assets in detail. Although much is known in theory, only practice will reveal the details and difficulties of day-to-day operation. Testing should help the CNB to better understand the potential, limitations and risks of technologies related to bitcoin and blockchain.

4. How large is the investment, and are you planning to invest further?

The total volume of the test portfolio is USD 1 million. However, smaller-scale operations will continue to be made to test operational readiness in various market situations and maintain the CNB’s preparedness for executing transactions on this market. For this reason, the structure of the portfolio may change somewhat over the course of the test with regard to the test operations made. Similarly, the value of the portfolio may fluctuate depending on market developments. However, we will not actively increase the total volume.

Given the test portfolio’s marginal size, any price fluctuations will not affect the CNB’s financial performance.

5. Why do you need a test portfolio? Are analyses on paper not enough?

Digital assets have specific features (custody, on-chain procedures, settlement, audit trail) that cannot be fully tested without a real – albeit small – exposure. In the test portfolio, the CNB will test the whole chain of processes associated with the purchase, holding and management of digital assets – from technical administration of keys and multi-level approval processes, through crisis scenarios and security mechanisms, to verifying AML compliance. Maintaining and developing in-house expertise is also an important factor – practical experience will enable staff to acquire and transfer knowledge across teams.

6. Is this in accordance with the Act on the CNB?

Bitcoin transactions can be made on the basis of Article 32 of the Act on the CNB, which stipulates that:

The Czech National Bank shall be entitled to carry out transactions on the financial market for the performance of its tasks, in particular

a) keeping accounts of banks, foreign bank branches and credit unions and accepting their deposits,
b) trading in investment instruments and other securities, foreign exchange, precious metals, receivables and other assets in the form of purchases and sales, repo transactions, deposits, loans, borrowings or futures,
c) conducting credit operations.

The CNB has concluded that bitcoin can generally be regarded as an asset within the meaning of subparagraph b). However, the additional condition in the opening sentence of the article, namely that the asset is traded on the financial market, is considered crucial. The term “financial market” is not defined explicitly in Czech law. However, in the CNB’s opinion, the broadest definition applies, including all market subcategories, and there can be no doubt that digital assets are currently traded on the “financial market”.

In general, the purchase is also based on Article 40 of the Act on the CNB, which authorises the CNB to engage in investment and commercial activities insofar as is necessary to provide for its own operations. The purchase of the test portfolio is also in accordance with Article 47a, which stipulates that the CNB shall manage its assets with due diligence. The test purchase serves simultaneously to support several tasks of the central bank as stipulated in Article 2 of the Act on the CNB, especially in the areas of supervision, financial stability, the sound operation of the financial system, and indirectly also monetary policy. So, direct purchases of digital assets/bitcoin are in accordance with the Act on the CNB.