The Czech Republic gained significant attention in the Bitcoin world when Czech National Bank (CNB) Governor Aleš Michl publicly proposed in late 2024 that the central bank allocate a portion of its reserves to Bitcoin. This made the Czech Republic the first European country where a sitting central bank governor formally advocated for sovereign Bitcoin reserves — a proposal that generated intense debate both domestically and internationally.
Central Bank Bitcoin Reserve Proposal
The Proposal
In late 2024, CNB Governor Aleš Michl proposed allocating up to 5% of the central bank's reserves (approximately €7 billion) to Bitcoin. Michl argued that Bitcoin could serve as a portfolio diversification tool alongside the bank's existing holdings of gold, euros, and dollars.
The Test Purchase
The CNB board declined the full 5% allocation but approved a historic compromise:
- October 30, 2025: The CNB approved a $1 million test portfolio containing Bitcoin, a USD stablecoin, and a tokenized deposit
- November 13, 2025: The purchase was publicly announced, making the Czech National Bank the first central bank in history to directly purchase Bitcoin
- The test portfolio represents just 0.0006% of CNB's balance sheet and is held outside official reserves
- The CNB plans to evaluate results over 2-3 years before considering larger allocations
- ECB President Christine Lagarde stated she was "confident" Bitcoin would not become part of EU central bank reserves, but the Czech move has inspired similar discussions in Switzerland, Sweden, and other countries
Bitcoin Community
Prague has one of Europe's most vibrant Bitcoin communities:
- Paralelní Polis — a Bitcoin-only café, hackerspace, and co-working space in Prague, operational since 2014; accepts only Bitcoin
- Regular Bitcoin meetups and conferences
- Prague has historically been a popular destination for Bitcoin developers and entrepreneurs
- Czech Bitcoiners have been influential in the European Bitcoin community
Regulatory Environment
- As an EU member state, the Czech Republic implements the MiCA (Markets in Crypto-Assets) regulation
- The Czech Republic has generally maintained a crypto-friendly stance
- Tax treatment: Capital gains tax applies, with some exemptions for long-term holdings
- Prague hosts several crypto exchanges and service providers
News Timeline
| Date | Event |
|---|---|
| 2014 | Paralelní Polis opens as Bitcoin-only space in Prague |
| Jan 2025 | CNB Governor Michl proposes 5% Bitcoin allocation (~EUR 7B) for reserves |
| Oct 2025 | CNB board approves $1M test portfolio — first central bank Bitcoin purchase ever |
| Nov 2025 | Purchase publicly announced; global media coverage |
| 2025 | MiCA regulation implemented |
| 2026 | CNB evaluating test portfolio results; larger allocation decision pending |
News last updated: April 2026