The Czech central bank has begun building a small experimental portfolio of digital assets valued at one million dollars as part of a long term plan to understand how tokenised markets function in practice. The portfolio consists primarily of bitcoin along with a selection of dollar based stablecoins and a tokenised deposit, all acquired through a regulated exchange. The bank stated that the objective is to gain operational experience across the entire lifecycle of holding and managing digital instruments, including key management, approval procedures, crisis protocols and compliance verification. The assets will be held separately from the institution’s international reserves and will not be expanded for investment purposes. The pilot is expected to run for two to three years, after which the bank will evaluate whether digital assets can meet legal and operational requirements for potential inclusion within a central bank framework. Officials emphasised that the exploration reflects emerging payment models and investment structures that may influence how financial infrastructure evolves in the coming decade.
As part of the experiment, the central bank will process transactions within the portfolio to test operational workflows and assess how market conditions affect asset behaviour. The valuation of the digital holdings will fluctuate in line with market movements, and the composition of the portfolio may be adjusted as the institution tests exposure to additional instruments. Governor Ales Michl noted that new forms of tokenised payment and investment mechanisms are emerging rapidly and that the bank wants to ensure readiness for future developments. He outlined a vision where individuals could seamlessly use the Czech crown to purchase tokenised government bonds or other assets through digital channels. The initiative aims to generate practical insights into custody tools, settlement efficiency and regulatory safeguards. It also reflects a broader trend among central banks examining how tokenised financial instruments may intersect with conventional monetary systems without directly altering reserve strategies.
The central bank reiterated that adding bitcoin or other digital assets to official reserves is not being considered in the near term due to legal constraints and the current maturity of the asset class. The institution also referenced the cautious stance taken by European monetary authorities, noting that while the Czech Republic is not part of the eurozone, it remains within the European System of Central Banks and must respect associated regulatory parameters. Purchasing digital assets through an ETF would be legally possible, the bank said, but such a step is not under review given bitcoin’s limited historical record and volatility profile. By situating this testing programme outside its reserve holdings, the bank complies with local and European frameworks while gaining operational exposure to evolving digital markets. The project highlights how central banks are increasingly assessing tokenised financial tools within controlled environments to inform future policy considerations and potential technological integration pathways.
