Could Bitcoin rival gold in global reserves?
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The Czech Republic is considering a move for Bitcoin reserves, alongside tax reforms favoring crypto investments.
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Global momentum grows for Bitcoin as a reserve asset, complementing traditional holdings like gold.
Bitcoin [BTC] is steadily capturing the attention of nations worldwide, with 2025 marking a surge in its recognition as a potential addition to foreign exchange reserves.
Among the latest to express interest is Aleš Michl, the governor of the Czech National Bank. He recently highlighted the possibility of acquiring “a few Bitcoin” as part of a diversification strategy.
Governor of the Czech National Bank explains the potential role of Bitcoin
While the move is not intended as a significant investment, Michl’s remarks, shared in an interview with Czech media, underscore a growing openness to exploring cryptocurrency’s role in national reserves.
Remarking on the same, Mario Nawfal took to X (formerly Twitter) and noted,
“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.”
However, any move by the Czech National Bank to include Bitcoin in its reserves would require approval from its seven-member board. This is done to ensure a collective decision-making process.
Notably, Janis Aliapulios, an adviser to the board, has clarified that there are no immediate plans to invest in Bitcoin. Despite this, Governor Michl has indicated an openness to exploring cryptocurrency diversification in the future.
Czech Republic’s other pro-crypto plans take shape
Additionally, in December, the Czech Republic unveiled plans to overhaul its crypto taxation policies in a bid to modernize its approach to cryptocurrency regulation.
Prime Minister Petr Fiala proposed exempting digital assets from capital gains tax if held for over three years. This move is aimed at incentivizing long-term investments.
The plan includes removing reporting requirements for transactions below 100,000 korunas annually (approximately $4,200), offering notable relief to smaller investors and casual traders.
Expressing on the matter, Czech-based Bitcoin mining expert Kristian Csepcsar added,
“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.”
While the Czech National Bank is prioritizing an increase in its gold reserves to 5% of total assets by 2028, Bitcoin is gaining traction globally as a potential reserve asset.
With a 131% surge in value over the past year compared to gold’s 30%, Bitcoin is seen as a strong complement to traditional assets.
Other nations are already in discussions about cryptocurrency reserves
Meanwhile, in the U.S., the proposed Bitcoin Act, led by Senator Cynthia Lummis, has spurred efforts in 13 states, including Ohio and Pennsylvania, to establish Bitcoin reserves as a hedge against USD devaluation.
This momentum was further accelerated with Donald Trump’s presidency and Republican control of the Senate. Additionally, momentum around Bitcoin as a reserve asset is growing globally, with countries like Japan and Switzerland exploring its adoption.
Switzerland is debating a proposal to include Bitcoin in national reserves alongside gold, requiring 100,000 citizen signatures by mid-2025.
Meanwhile, Russia’s new laws enable companies to use Bitcoin for cross-border transactions, offering alternatives amid sanctions.
These developments highlight Bitcoin’s potential to complement gold in reserves and address economic and geopolitical challenges.
Conclusion
In summary, the developments in the Czech Republic regarding Bitcoin diversification strategies signal a broader acceptance of cryptocurrency in the global financial landscape. The combination of pro-crypto tax reforms and the exploration of Bitcoin as a reserve asset reflects a shifting paradigm in how nations view traditional versus digital assets. As more countries consider similar measures, the dynamics between Bitcoin and gold could significantly evolve, creating new investment opportunities and challenges.
