Czech Finance Minister Zbynek Stanjura warned against the central bank governor’s proposal to consider investing part of the country’s foreign-currency reserves in bitcoin.

European Central Bank President Christine Lagarde slapped down on Thursday a suggestion by her Czech colleague Ales Michl to include bitcoin among his country's official reserves.

Czech Finance Minister Zbynek Stanjura has warned against the CNB’s proposal to consider investing up to 5% of its reserves in Bitcoin, citing volatility risks.

Czech central bank exploration into Bitcoin and new asset classes aims to diversify and potentially enhance reserve management.

The Czech National Bank will consider holding billions of dollars worth of bitcoin in its reserves, Governor Ales Michl said on Wednesday, potentially the first shift into the cryptocurrency by a western central bank if it went ahead.

Czech monetary policymakers will assess whether to invest in bitcoin, Governor Ales Michl said, a move that could make the country one of the first to hold part of its foreign reserves in the crypto currency.

The Czech Republic does not use the euro but the country is in the EU. The CNB did not comment on the particular assets it's considering. The proposal was put forward by CNB Governor Aleš Michl, who has said his interest was in possibly adding bitcoin to bank's balance sheet.

The Czech National Bank (CNB) is considering a 5% Bitcoin allocation, surpassing its gold reserves. If approved, this move could reshape the future of national reserve assets.