The governor of the Czech Republic examined Bitcoin as a reserve asset

The Governor of the Czech National Bank, Ales Michal, expressed his desire to increase the country's foreign exchange reserves.

Mitchell described the idea of ​​acquiring “a few bitcoins” as a diversification move, though not a huge investment for the bank.

The Czech Republic considers Bitcoin a strategic foreign asset.

The governor of the National Bank expressed this desire in a recent interview with Czech media. Any decision to include Bitcoin in the reserve would require approval from the bank's seven-member board.

While there are no immediate plans to invest in Bitcoin, Michal indicated that diversification into the cryptocurrency could be explored in the future. Recently, the country has seen several pro-crypto initiatives from the government.

“Czech National Bank Governor Says BTC Is An Attractive Option As A Possible Move To Expand Reserves. No official plans yet, but the convo is heating up,” wrote Mario Naufal on X (formerly Twitter).

In December, the Czech Republic announced plans to reform crypto tax policies. Prime Minister Petr Fiala outlined a proposal to exempt the sale of digital assets from capital gains tax if held for more than three years.

The plan also removes the reporting requirement for transactions under 100,000 koruna each year, which is equivalent to around $4,200. This gives great benefits to long time owners.

“Prague is the bitcoin capital of the world. No capital gains tax has been enacted in the Czech Republic with all members of parliament voting on it,” Czech-based bitcoin mining expert Christian Sepsisar recently wrote on X.

In the near future, the Czech National Bank will focus on increasing gold reserves. The country plans to increase its gold holdings to 5% by 2028.

International Competition for Bitcoin Reserves

Interest in Bitcoin as a reserve asset is growing globally. In the US, the Bitcoin Act proposed by Senator Cynthia Lammis of Wyoming advocates for systematic bitcoin reserves.

This proposal comes in the wake of the election of Donald Trump as President and the Republican Party's control of the Senate. At least 13 states, including Ohio and Pennsylvania, are preparing legislation to establish Bitcoin reserves to protect against risks such as USD devaluation.

Elsewhere, countries such as Japan and Switzerland are exploring similar initiatives. Switzerland is debating a proposal to add bitcoin to its national reserves alongside gold.

Last month, the Swiss Federal Chancellor recently published an initiative requiring the Swiss National Bank to include Bitcoin in its assets. To advance, the proposal needs 100,000 signatures from Swiss citizens by June 30, 2025.

Legislators in Russia are also considering Bitcoin reserves. New laws passed in December allowed Russian companies to use Bitcoin and other cryptocurrencies for cross-border payments.

The changes come as sanctions limit trade options with key partners such as China and Turkey, while international banks are wary of managing Russia-related transactions due to regulatory risks.