Central Banks Go Big on Bitcoin: A Game-Changing Crypto Endorsement

Central banks just flipped the script—Bitcoin isn't fringe finance anymore. The suits are all-in.

Why now? After years of skepticism, institutional adoption hits escape velocity. No more 'volatile toy' talk—just cold, hard treasury allocations.

The irony? These are the same institutions that once warned retail investors about crypto's risks. Now they're front-running the herd.

One hedge fund manager quipped: 'Turns out 'irresponsible speculation' is just what you call other people's profits.'

The likelihood of the Federal Reserve reducing interest rates in December has dropped below 50%, resulting in Bitcoin’s price declining to below $101,000. Investors in cryptocurrencies are trapped in a dilemma, and a waning risk appetite might lead to further losses. Recently, CBS reported that military officials presented President TRUMP with plans for intervention in Venezuela. Amidst these developments, one might wonder if there’s any positive news on the horizon.

Initiative from the Czech National Bank

Indeed, there’s a silver lining. Today, the bank announced its test portfolio predominantly composed of Bitcoin$102,931. The Czech National Bank (CNB) has marked a significant milestone in central banking by incorporating Bitcoin for the first time into its portfolio. A test portfolio worth $1 million has been crafted, consisting of Bitcoin, stablecoins, and some tokenized deposits.

The pilot program was approved by the bank’s board on October 30, granting the CNB vital experience with blockchain-based assets. By examining the functioning of these assets in payments and financial transactions, the bank seeks to shape its future strategies through direct experience with the test portfolio.

Investing in Bitcoin

While this portfolio won’t be actively increased on the bank’s balance sheet, it will remain outside international reserves. This year, CNB President Ales Michl proposed the concept of investing in Bitcoin. Nevertheless, both the European Central Bank and some within the Czech Republic dismissed the idea as absurd. ECB President Lagarde mocked and dismissed it. However, today, President Michl has demonstrated the resolve behind his proposition to everyone.

Today, Michl stated:

“I proposed the idea of creating a test portfolio in January 2025. The objective was to test decentralized bitcoin from a central bank’s perspective and evaluate its potential role in diversifying our reserves.”

Many countries hold Bitcoin in their portfolios. However, these assets are seized profits from crime, awaiting sale. Before Trump’s arrival, the U.S. Department of Justice executed billion-dollar asset sales and completed formal permissions for more. Yet, upon assuming office, Trump announced that over $30 billion worth of assets would be retained as the nation’s crypto reserve.

CBS also recently declared that military officials have presented options to Trump regarding Venezuela, and a potential attack is among the least desired outcomes for cryptocurrencies in the short term.