- The Czech Republic is considering a move towards Bitcoin reserves, alongside tax reforms that promote crypto investments.
- Global momentum is growing for Bitcoin as a reserve asset, complementing traditional assets like gold.
Bitcoin [BTC] is steadily attracting the attention of countries around the world, with its recognition as a potential addition to foreign exchange reserves set to increase sharply by 2025.
One of the latest to show interest is Aleš Michl, the governor of the Czech National Bank. He recently highlighted the possibility of acquiring “a few Bitcoin” as part of a diversification strategy.
Governor of the Czech National Bank explains…
While the move is not intended to be a significant investment, Michl’s comments, shared in a interview together with the Czech media underline a growing openness to investigating the role of cryptocurrency in national reserves.
Making the same comment on this, Mario Nawfal took to X (formerly Twitter) and commented:
“The Governor of the Czech National Bank says that BTC could be the step to diversify reserves and called it an interesting option. There are no official plans yet, but the conversation is becoming increasingly exciting.”
However, any move by the Czech National Bank to include Bitcoin in its reserves would require approval from the seven-member board. This is done to ensure a collective decision-making process.
Notably, Janis Aliapulios, an advisor to the board, has clarified that there are no immediate plans to invest in Bitcoin. Despite this, Governor Michl has indicated that he is open to exploring cryptocurrency diversification in the future.
The Czech Republic’s other pro-crypto plans
Additionally, in December, the Czech Republic unveiled plans to overhaul its crypto tax policy in an effort to modernize its approach to cryptocurrency regulation.
Prime Minister Petr Fiala proposed exempting digital assets from capital gains taxes if they are held for more than three years. This step is intended to stimulate long-term investments.
The plan includes removing reporting requirements for transactions of less than 100,000 kroner per year (about $4,200), providing significant relief to smaller investors and informal traders.
This is what the Czech Republic-based Bitcoin mining expert speaks about Kristian Csepcsar added,
“Prague is the bitcoin capital of the world. No capital gains tax on bitcoin has just been passed in the Czech Republic, even though all members of parliament voted for it.”
As the Czech National Bank prioritizes increasing its gold reserves to 5% of total assets by 2028, Bitcoin is gaining popularity worldwide as a potential reserve.
With a 131% increase in value over the past year, compared to gold’s 30%, Bitcoin is seen as a strong addition to traditional assets.
Other countries already involved in these discussions
Meanwhile, in the US, the proposed Bitcoin Act, led by Senator Cynthia Lummis, has boosted efforts in 13 states, including Ohio and Pennsylvania, to build Bitcoin reserves as a hedge against USD devaluation.
This momentum was further accelerated by Donald Trump’s presidency and Republican control of the Senate. Furthermore, momentum around Bitcoin as a reserve asset is growing globally, with countries such as Japan and Switzerland exploring its adoption.
Switzerland is debating a proposal to include Bitcoin alongside gold in its national reserves, which would require 100,000 citizen signatures by mid-2025.
Meanwhile, Russia’s new laws allow businesses to use Bitcoin for cross-border transactions, offering alternatives amid sanctions.
These developments highlight Bitcoin’s potential to replenish gold reserves and address economic and geopolitical challenges.
