- Czech National Bank governor Aleš Michl expressed interest in acquiring a small Bitcoin reserve, though the bank’s board currently has no formal plans and would require unanimous agreement.
- The Czech Republic recently implemented crypto-friendly legislation, eliminating capital gains tax on long-term holdings up to 100,000 Czech Koruna held for over three years.
- VanEck’s 2024 report projects Bitcoin could facilitate 10% of global international trade by 2050, potentially reaching US$2.9 million per coin, while US Federal Reserve officials strongly opposed the concept of Bitcoin reserves.
The plot thickens. There’s another potential entrant in the race to establish a Bitcoin reserve. Speaking on CNN Prima News, Czech National Bank (ČNB) governor Aleš Michl discussed the potential of the Czech Republic establishing a national Bitcoin reserve.
Bitcoin Reserve Considerations Follow Tax Exemption Rules
Michl said he is considering adding “a few Bitcoin” to the bank’s reserves and doesn’t believe this to be a substantial amount.
I was thinking of acquiring just a few Bitcoin, but I never intended to make a significant investment.
Aleš Michl, Czech National Bank GovernorThe bank’s board consists of seven members who would need to come to an agreement, with board adviser Janis Aliapulios confirming that there are currently no plans to add Bitcoin. Yet, Michl believes that Bitcoin is “an interesting option for diversification against other assets”.
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The bank seems to be actively seeking diversification, as the governor also said they are looking at increasing gold reserves to 5%.
Last year, the Czech Republic introduced legislation which eliminates capital gains tax from personal long-term crypto holdings. The law came into effect on January 1, 2025, and exempts tax on assets held over three years for amounts up to 100,000 Czech Koruna, or around US$4,000 (AU$6,604).
The musings about a Bitcoin reserve by the National Bank governor put the Czech Republic on an exclusive list of just a few countries with similar plans.
Currently – at least going by what’s publicly known – there’s talk of a Bitcoin reserve in the US, Brazil, Russia, Canada and Poland. Japan also seems interested but appears to be waiting for cues from overseas.
Fed in Tantrum Over Reserve Question
In a 2024 report, VanEck predicts that by 2050, Bitcoin could facilitate 10% of global international trade and 5% of domestic trade, prompting central banks to hold 2.5% of their assets in BTC.
Under assumptions of global growth and Bitcoin demand, they forecast a potential Bitcoin price of US$2.9 million (AU$4.65 million) each, with a US$61 trillion (AU$97.9 trillion) market cap, with Bitcoin’s second-layer solutions valued at around US$7.6 trillion (AU$12.2 trillion), about 12% of Bitcoin’s total value.
It will be interesting to see if any of these countries will eventually take steps to add Bitcoin to their reserves.
Related: Ripple CEO Hints at Bullish 2025, Says Team Trump About to ‘Jumpstart’ Crypto
According to Perianne Boring from the Digital Chamber it might take a bit of convincing to make these plans become a reality. Boring said in a recent podcast that she met with the board of governors of the US Federal Reserve System, and she was taken aback by their reactions to her even discussing a Bitcoin reserve.
[They] were cussing, saying this is the dumbest idea they’ve ever heard; there’s nothing strategic about Bitcoin. [They] almost kicked us out of the room.
Perianne Boring, Digital Chamber
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