Central banks and cryptocurrencies

Central banks are increasingly engaging with cryptocurrencies and digital assets recently, with several significant developments shaping the landscape:

Czech National Bank

The Czech National Bank (CNB) has recently taken a groundbreaking step towards potentially becoming the first Western central bank to hold cryptocurrency as a reserve asset. On January 30, 2025, the CNB approved a proposal to study investing its reserves in additional asset classes, with a particular focus on Bitcoin. CNB Governor Aleš Michl, the driving force behind this initiative, has expressed interest in diversifying the bank's portfolio by potentially allocating up to 5% of the country's €140 billion foreign exchange reserves to Bitcoin. Michl believes that Bitcoin could be a good option for diversification, citing growing investor interest and the launch of Bitcoin ETFs by major finance firms like BlackRock in 2023. This move has garnered significant attention and sparked debate:

Proponents view this as a progre…