 disclosed that he had thought about adding Bitcoin to the bank's foreign exchange reserve portfolio.){kind=link}
Czech National Bank is mulling the idea of having Bitcoin as a reserve. in In an interview with CNN Prima News’ Partie Terezie Tománková program, the governor of the Czech National Bank (CNB) disclosed that he had thought about adding Bitcoin to the bank’s foreign exchange reserve portfolio.
The interview saw the governor saying “I have thought about Bit.” He made it clear, though, that this was only a plan to purchase a modest quantity of Bitcoin and not a strategy for a major investment.
Any decision to buy Bitcoin would require approval from the seven-member board of the Czech National Bank. Therefore the claim at present is just a plan and might take a long time before becoming a reality.
Czech Republic’s Previous Move to Bring Pro-Crypto Legislation
Today’s statement is not the only time the Czech Republic has tried bringing crypto friendly regulation onboard.
The increasing popularity of cryptocurrencies has led to investors seeking more hospitable jurisdictions or using riskier means to safeguard their holdings due to regulatory uncertainty and high tax costs.
The Czech Republic had responded to this by enacting comprehensive reforms that directly address these problems, improving clarity and opening up the sector to companies.
The nation saw a spree of tax reforms, relaxation in disclosure policy and ease in trading rules being enacted by the government in the past.
In line with the European Union’s Markets in Crypto Assets (MiCA) framework, these forward-thinking policies have the potential to establish the country as a leader in digital finance.
Read Also: Japan’s Govt Cautious on Bitcoin Reserves Amid Uncertainty, Prioritizes Safety and Liquidity
Czech Republic Stays In Tandem With Global Push of Crypto
The thought for having Bitcoin as an asset reserve is not restricted to Czech Republic but has rather been a global talk. The leader in this race at present is the USA.
Just previously, Dennis Porter, co-founder and CEO of Satoshi Action Fund, disclosed that at least 13 states are presently drafting “Strategic Bitcoin Reserve” legislation, marking a dramatic shift in cryptocurrency policy across the United States.
According to Porter, January will be a record-breaking month for bitcoin-related legislative efforts.
In the same tone, Dutch financial expert Bram Kanstein had advocated for the creation of a national Bitcoin reserve in the Netherlands.
In an open letter to the Board of De Nederlandsche Bank and the Dutch Finance Minister, Kanstein further underlined the importance of owning Bitcoin as a strategic asset.
According to him, the nation may take the lead in the digital financial revolution by allowing citizens to purchase Bitcoin through the sale of gold reserves or the issuance of government bonds.