The Czech National Bank is aiming to set up a $7.3 billion strategic Bitcoin reserve. According to the Financial Times, the country may be the first in Europe to include the premier cryptocurrency in its foreign exchange reserves.
As reported, the Governor of the Central Bank, Aleš Michl will present the proposal to the CNB’s board meeting on January 30, 2025. If things go as planned, the apex financial institution in the Czech Republic may spend more than $7.3 billion on Bitcoin.
The report further indicated that the Governor of the central bank has been considering Bitcoin as a potential reserve asset for a while. Meanwhile, the move to set a Bitcoin strategic reserve is gradually gaining popularity across different countries and jurisdictions.
In the US, Senator Cynthia Lummis is championing the Bitcoin Act that proposes the set of a strategic Bitcoin reserve. This move further aligns with the campaign promise of President Donald Trump that previously indicated the idea of setting up a BTC reserve.
Popular figures in the US including Michael Saylor all proposed ideas to the US government to invest in Bitcoin. More so, the Bitcoin Act bill is currently enjoying bipartisan support pinpointing how the proposed legislation may soon become law.
How the Bitcoin Reserve Indicates Government Support for Digital Assets in Czech Republic
Recently, Michl hinted that the CNB could acquire some BTC for diversification. Despite aiming to add Bitcoin to the CNB’s diversification strategy, Aleš Michl previously revealed that the BTC acquisition plan may not count as a significant investment for the central bank.
Early this year, an adviser to the board confirmed that Michl is open to BTC diversification but the bank is not looking towards that direction. However, the latest report by the Financial Times is a huge U-turn that further underlines the increasing adoption of cryptocurrency in the country.
In December 2024, the Prime Minister of the Czech Republic, Petr Fiala said the country is on the verge of introducing legislation that will exempt digital assets held for more than 3 years from tax. He added crypto holders will no longer have to report transactions below $4,200.
According to the Prime Minister, the legislation will be implemented alongside the European Union’s Markets in Crypto-Assets (MiCA) regulation. He submitted that the bill will support the digital assets sector to function effectively and grow.
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