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The Czech National Bank (CNB) is considering adding bitcoin to its national reservesWith Governor Aleš Michl proposing to assign up to 5% of the reserves of 140 billion euros from the country to the cryptocurrency. If approved, this movement would make the first Western Central Bank to maintain bitcoin. Michl argues that bitcoin could serve as a diversification tool in the midst of a growing global interest in cryptographic investments, particularly after the introduction of bitcoin ETFs by the main financial institutions such as Blackrock.
The CNB board An internal analysis has approved yesterday to evaluate the potential risks and benefits of maintaining bitcoin as part of their reserves. This analysis will inform the final decision, but immediate changes will not be made until the review is completed. While there is no specific timeline, it is reasonable to anticipate that the analysis of the CNB and the subsequent decision -making process could take several months. Since the CNB Board has the authority to decide on the composition of the reserve, legislative approval is not required at this stage. However, if more broad policy changes or additional supervision measures are necessary, they can follow more regulatory discussions. The result of this process will determine whether the Czech Republic takes a pioneering step in the adoption of bitcoin at the central banking level.
Of course, not everyone is convinced. Critics argue that bitcoin's volatility makes it an unreliable reserve asset, and prices fluctuate dramatically for short periods. <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-30/czech-finance-minister-warns-against-adding-bitcoin-to-reserves?utm_source=chatgpt.com”>Ministry of Finance Czechs Zbyněk Stanjura has warned that the Central Bank You must prioritize stability, not speculation. But volatility alone does not disqualify that an asset is part of a diversified reserve, after all, the Czech National Bank already has gold, foreign currencies and bonds, all of which entail their own risks. Yes, bitcoin is volatile, but so is the euro when central banks printed billion. bitcoin, despite its changes in prices, has been the asset with the best performance of the last decade and is increasingly recognized as a coverage against excessive monetary expansion and inflation. The continuous struggles of the Eurozone with debt and inflation only strengthen the argument for the inclusion of bitcoin. By maintaining a small assignment of bitcoin, Czech is not betting recklessly: it is taking a calculated step to guarantee financial resilience in an era of growing economic uncertainty.
Christine Lagarde <a target="_blank" href="https://x.com/BitcoinMagazine/status/1884969802608898155″>recently ruled out the idea bitcoin becomes a reserve asset in the European Union, but here is the key detail: Czechia is in the EU, but not in the Eurozone. Unlike the countries that must follow the policies of the European Central Bank, Czech has its own currency, the Czech Koruna (CZK) and a totally independent central bank. This means that the Czech National Bank is free to make its own monetary decisions, including the addition of bitcoin to its reserves. While Brussels resists, Prague can lead.
For many, this proposal seems radical. But for those who understand Cecia's past, he feels like the next natural step. My country of origin is a nation of DIY thinkers, people who know that if you don't do it, nobody will. We have always had to discover how to survive and maintain our freedom because they have taken it very often. It simply makes sense that bitcoin resonates here. When he grows listening to his grandfather's stories at Christmas dinner, stories about how his land and his house were seized by the communist regime, only to be careless and ruined by state cooperatives, you understand. When you hear that your relatives flee abroad, leaving behind all their possessions, sewing the last of their gold inherited in their coats only to have the opportunity to survive in the West, you really understand it. You want to have something that nobody knows what you have, something that nobody can take away.
Chechia's innovation in bitcoin is not a coincidence. The first bitcoin mining pool in the world (Slush Pool, now Braiuns) was founded in Prague, along with the first hardware wallet, Trezor. Recently, the Government took a progressive step by eliminating the capital gains tax for long -term bitcoin holders, which facilitates citizens to build a generational wealth. This does not happen on its own: it is the result of the relentless work of Bitcoiners in Checia, which are constantly pushing the limits, educating not only individuals but also to political, politicians and governors responsible. Despite the ongoing debates about what constitutes a basic approach, in my opinion, there is no better example of an ascending strategy. We often complain that policies make no sense and are unfair, but what do we do to change them? We bend, explain, educate and make it clear what we want, why we will vote and where we draw the line.
It is not just bitcoin, it is about ensuring our place in Europe and reaffirming our role in the western world. The CNB proposal of maintaining bitcoin as a reserve asset could consolidate Checia's reputation as European innovation leader, and, let's be honest, finally giving this small nation access to bitcoin at the price he deserves. Unlike nations rich in resources that depend on oil or vast agricultural exports, Czech has always depended on ingenuity, crafts and strategic thinking. We have no liquid gold under our feet, and we cannot 'pierce, baby, pierce'. We have no vast fertile lands. But we have our minds and our hands, and in this highly competitive race, this is how we will ensure our future.
This article is a Carry. The opinions expressed are completely from the author and do not necessarily reflect those of btc INC or bitcoin magazine.
