National Bank of the Czech Republic Interested in Forming a Bitcoin Reserve

Bittime - The National Bank of the Czech Republic (ČNB) is now considering adding Bitcoin to the country's foreign reserves. This wish was conveyed directly by the Governor of ČNB, Aleš Michl. 

He said that this step could be a diversification strategy, even though it was not a large investment for the central bank. 

According to Michl, although there has been no official decision on this plan, consideration of making Bitcoin part of foreign exchange reserves could pave the way for the use of cryptocurrency as a strategic asset.

Bitcoin As a Strategic Asset for the Czech Republic

Michl emphasized that the decision to include Bitcoin in the country's reserves still needs to be approved by the bank's seven-member board. Currently, there are no definite plans to implement this. 

Nonetheless, the ČNB Governor acknowledged that the use of Bitcoin and other digital assets to diversify foreign exchange reserves could be further explored in the future. 

This plan is in line with a number of pro-crypto initiatives that have emerged in the Czech Republic in recent years. 

In December 2024, the Czech government even announced plans to reform its cryptocurrency tax policy. This aims to provide more incentives for long-term investors.

In the proposal, sales of digital assets held for more than three years will be exempt from capital gains tax. In addition, transactions under 100,000 koruna (around IDR 66 million) per year no longer require reporting. 

This is certainly profitable for Bitcoin investors who invest in the long term.

Read also: Arthur Hayes Predicts Bitcoin Prices Will Rise High Due to China's Policies

The Czech Role in the Global Race for Bitcoin Reserve

Interest in Bitcoin as a foreign exchange reserve is not only seen in the Czech Republic. Other countries, including the United States, Japan and Switzerland, are also exploring similar measures. 

In America, the proposal is known by the name Bitcoin Act proposed by Wyoming Senator Cynthia Lummis, proposes that Bitcoin become part of the country's strategic foreign exchange reserves. 

This proposal received major support after Donald Trump was re-elected as president and the Republican Party took control of the Senate. Some states, such as Ohio and Pennsylvania, are even drafting legislation to establish Bitcoin reserves to address the risk of US dollar devaluation.

Switzerland and Russia Also Consider Adding Bitcoin to National Reserves

Meanwhile, in Switzerland, the government is considering a proposal to add Bitcoin to the national reserve, along with gold. 

The Swiss government even recently put forward an initiative that would require the Swiss National Bank to include Bitcoin as an asset. To proceed with this proposal, 100,000 signatures from Swiss citizens are needed by June 30, 2025.

Read also: Getting to know Bitcoin Liquidation Heatmap: Definition and How it Works

In Russia, after a series of international sanctions that limited trading options with key partners such as China and Türkiye, the country is also considering Bitcoin as a foreign exchange reserve. 

A new law published in December 2024 allows Russian companies to use Bitcoin and other cryptocurrencies for cross-border payments. 

Meanwhile, international banks are still wary of handling Russia-related transactions due to regulatory risks.

Conclusion

While the decision to add Bitcoin to the Czech Republic's foreign exchange reserves is not yet certain, this statement from the Governor of the Czech National Bank illustrates a growing trend worldwide. 

Countries are starting to see Bitcoin not only as a means of speculation. However, these digital assets are also strategic assets to face global economic uncertainty. 

This is an indication that the future of cryptocurrencies, especially Bitcoin, is getting brighter as part of the international financial system.

Read also: Bitcoin Performance Beats S&P 500, Is This the Right Time to Buy Bitcoin?

FAQs About Bitcoin

1. What is Bitcoin?

Bitcoin is the first digital asset created in 2009 by someone with the pseudonym Satoshi Nakamoto. Bitcoin uses blockchain technology to ensure secure, transparent and decentralized transactions without involving banks or third parties. 

2. How does Bitcoin work?

Bitcoin works on a decentralized system called the blockchain, which functions as a digital ledger for all Bitcoin transactions. 

3. What are the advantages of Bitcoin compared to traditional currencies?

One of the main advantages of Bitcoin is decentralization. There is no central authority controlling Bitcoin, which means there is no inflation caused by government monetary policy. 

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Reference 

BeIn Crypto, Czech National Bank Considers Adding Bitcoin to Its Foreign Exchange Reserves, accessed January 8, 2025.

The Crypto Basic, Czech Republic National Bank Governor Considers Strategic Bitcoin Reserve, accessed January 8, 2025.

Author: Y