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Czech Central Bank Enters Crypto With $1 Million Trial Investment

Key Takeaways

  • ​The Czech National Bank purchased $1 million in digital assets, including Bitcoin, as part of a small-scale test to explore crypto use;
  • This trial aims to help the CNB understand how digital tools function, but there are no plans for a full crypto reserve yet;
  • Alongside the purchase, the CNB launched an innovation hub to study blockchain and adapt to financial technology changes.

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Czech Central Bank Enters Crypto With $1 Million Trial Investment

The Czech National Bank (CNB) has made a first step into the world of digital currencies by buying $1 million worth of cryptocurrency.

According to a press release, this initial crypto purchase includes three types of digital assets: Bitcoin BTC $94,835.03 , a stablecoin tied to the US dollar, and a bank-issued tokenized deposit.

By using a limited number of assets and selecting only a few, the CNB aims to study how digital tools work in practice.

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The central bank stated that it does not intend to create a full digital reserve anytime soon. Instead, this test is meant to prepare the institution for future developments, especially as other countries and financial systems begin exploring similar paths.

Governor Aleš Michl said the koruna might one day be used for everyday transactions as well as for buying tokenized investments.

To support this experiment, the CNB also launched a new project, the CNB Lab Innovation Hub. This hub will explore how technologies such as blockchain might be used in financial services and how the central bank can adapt its tools with technology advances.

In January, the CNB began exploring Bitcoin as a way to diversify its foreign currency reserves. Michl suggested setting aside up to 5% of the bank’s reserves, about $7.3 billion, for Bitcoin, though the bank’s board did not approve the plan.

On November 11, SoFi Technologies, a US-based bank, started offering cryptocurrency trading to its customers. What did CEO Anthony Noto say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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