Ales Michl (Gov. of the Czech National Bank, CNB) discussed Monday the possibility of adding Bitcoin to the country’s reserves of foreign currency in order to diversify the asset holdings.
His comments reflect an increasing interest by the government in cryptocurrency as a possible savings tool. Michl stated that he has proposed to purchase Bitcoin, but clarified that there are no immediate plans for such an action.
The Czech National Bank Governor explores Bitcoin acquisition
In a CNN Prima News interview, Michl revealed he considered buying “a few Bitcoins” to diversify his bank’s assets. Michl stressed that it would not be a large investment.
He said, “I thought about buying a few Bitcoins but never planned to make any significant investments.”
Michl highlighted Bitcoin’s appeal to investors, while noting the need for more consideration before any decisions are made.
The CNB board of seven members must approve any decision made by the buyer to purchase Bitcoin.
Janis Aliapulios clarified, as an adviser of the CNB Board, that the bank has no current plans to invest in Bitcoin. He did not, however, rule out future discussions.
The bank has decided to diversify its reserve through gold purchase. Bitcoin is not on the table at this time.
Aliapulios stated that the CNB intends to increase its gold assets to approximately 5% by 2028. This will allow it to balance traditional assets like Bitcoin with volatile assets.
Bitcoin’s 131% increase in price over the last year has reignited interest in its viability. Gold prices, on the other hand, rose by 30% in the same time period.
The Kobeissi Letter stated that Bitcoin’s price increase coincided with the six-to-1 ratio of corporate stocks sellers to buyers.
Czech Government Enacts Bitcoin Tax Exemption
According to legislation passed by Czech lawmakers in December , Bitcoins held for more than three y
According the Czech news outlet Parliamentni Listy this exemption is applicable if your annual income from cryptocurrency transaction does not exceed CZK 100 000 (approximately $4000).
This exemption includes a retroactive provision that allows digital assets acquired prior to 2025, under certain conditions, to be eligible in future taxation years.
Czech Premier Minister Petr Fiala has praised the new social media law, saying that it supports innovation and creates better conditions to support cryptocurrencies.
He said that the exemption would simplify the lives of citizens and encourage the use modern technology.
The Czech Republic is now one of the countries that are exploring cryptocurrency as a part of financial strategies.
El Salvador was the first country in September 2021 to launch an official Bitcoin Treasury Program.
Since then, a number of global leaders have expressed interest in Bitcoin, including U.S. political figures.
