The Czech National Bank (CNB), under Governor Aleš Michl, is considering the inclusion of Bitcoin in its foreign exchange reserves as part of their diversification strategy. This claim was reiterated on Coin Telegraph, citing an interview from CNN Prima News. Michl mentioned the possibility of acquiring "a few Bitcoin" to diversify the bank's assets, although he further emphasized that such an investment would not be substantial.

Any decision to incorporate Bitcoin into the CNB's reserves would require approval from its seven-member board. Currently, there are no immediate plans to proceed with such an investment. Instead, the CNB is focusing on increasing its gold reserves, aiming to raise gold holdings to about 5% of total assets by 2028.

According to JP Morgan, the ´´debasement trade is here to stay´´ as both assets (BTC and Gold) continue to gain importance within investors portfolios.

This consideration aligns with recent developments in the Czech Republic's approach to cryptocurrency. In December of 2024, the government announced plans to reform crypto taxation policies. Prime Minister Petr Fiala had proposed exempting digital asset sales from capital gains tax if held for over a three year period and removing the reporting requirements for transactions under 100,000 koruna (approximately $4,200 USD) annually. These reforms are designed to benefit long-term holders and encourage the use of digital assets as well.

Internationally, there has been a growing interest in Bitcoin as a reserve asset. In the United States, the proposed Bitcoin Act, supported by Wyoming Senator Cynthia Lummis, advocates for the creation of a strategic Bitcoin reserve. This initiative has gained momentum following the election of President-elect Donald Trump and the incoming Republican Senate majority. Similar proposals have emerged in states like Texas and Pennsylvania, indicating a broader trend toward considering Bitcoin in national and state reserves.

Bitcoin Government Holdings via Newhedge

While the CNB has no immediate plans to invest in Bitcoin, Governor Michl's openness to future discussions reflects a progressive stance towards cryptocurrency. This perspective, combined with the Czech Republic's favorable tax reforms, positions the country as a potentially significant player in the evolving landscape of digital assets.

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