Czech National Bank Considers Adding Bitcoin to Its Foreign Exchange Reserves

The governor of the Czech National Bank, Aleš Michl, has expressed interest in Bitcoin as a potential addition to the country’s foreign exchange reserves. 

Michl described the idea of acquiring “a few Bitcoin” as a diversification move, though not a significant investment for the bank. 

Czech Republic Considers Bitcoin a Strategic Foreign Asset

The national bank governor expressed this interest recently in an interview with the Czech media. Any decision to include Bitcoin in the reserves would require approval from the bank’s seven-member board. 

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

“The Czech National Bank’s governor says BTC might be the move for diversifying reserves, calling it an interesting option. No official plans yet, but the convo is heating up,” Mario Nawfal wrote on X (formerly Twitter). 

In December, the Czech Republic announced plans to reform its crypto taxation policies. Prime Minister Petr Fiala outlined a proposal to exempt digital asset sales from capital gains tax if held for over three years. 

The plan also removes the reporting requirement for transactions under 100,000 koruna annually, equivalent to about $4,200. This would offer significant benefits to long-term holders. 

“Prague is the bitcoin capital of the world. No capital gains tax on bitcoin has just been passed in The Czech Republic with all members of the parliament voting for it,” Czech-based Bitcoin mining expert Kristian Csepcsar recently wrote on X. 

In the near term, the Czech National Bank will focus on increasing its gold reserves. The country plans to raise gold holdings to 5% of total assets by 2028, according to recent reports.

A Global Race for Bitcoin Reserves 

Interest in Bitcoin as a reserve asset is also growing internationally. In the US, the Bitcoin Act, proposed by Wyoming Senator Cynthia Lummis, advocates for a strategic Bitcoin reserve. 

This proposal has gained momentum following Donald Trump’s election as president and the Republican Party’s control of the Senate. At least 13 states, including Ohio and Pennsylvania, are drafting legislation to establish Bitcoin reserves to counter risks like USD devaluation.

Elsewhere, countries like 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 Chancellery 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.

In Russia, lawmakers are also considering Bitcoin reserves. New laws introduced in December have enabled Russian companies to use Bitcoin and other cryptocurrencies for cross-border payments. 

These changes come as sanctions limit trade options with key partners such as China and Turkey, while international banks remain cautious about handling Russia-related transactions due to regulatory risks.