The Czech National Bank (CNB) is exploring Bitcoin's potential as part of its reserve management strategy, according to Governor Ale? Michl. He emphasised that Bitcoin should not be dismissed outright and urged central bankers to study its underlying technology. While the CNB has not committed to buying Bitcoin, its board has approved an analysis of new asset classes, including the cryptocurrency.

Michl acknowledged Bitcoin's extreme volatility and clarified that this initiative is not an endorsement but an effort to understand its risks and benefits. If CNB were to allocate even a small portion of its E140 billion reserves to Bitcoin, it could become the first Western central bank to invest in the asset publicly. However, sources suggest that potential exposure would be minimal, likely below 1% of total reserves.

Other European central bankers remain sceptical despite Michl's openness to financial innovation. German central bank governor Joachim Nagel compared Bitcoin to the 17th-century tulip bubble, calling it neither safe nor liquid. European Central Bank President Christine Lagarde also dismissed Bitcoin as a reserve asset, stating that it fails to meet the ECB's criteria for stability and transparency. However, Michl remains committed to diversifying CNB's investments, including increasing its holdings in US stocks.