Czech National Bank weighs bitcoin purchases for potential reserve asset diversification

Czech National Bank (ČNB) governor Aleš Michl discussed the possibility of bitcoin as part of the bank's reserve diversification strategy in an interview on Monday.

Speaking with CNN Prima News , a local media company, Michl revealed that he had suggested the Czech central bank purchase bitcoin to diversify its asset holdings, but clarified that there are no plans to acquire any cryptocurrency.

"Sure, I consider bitcoin, but there are seven of us on the board," Michl said, adding that discussions would continue. "Bitcoin is an interesting option for diversification against other assets."

"I was thinking of acquiring just a few bitcoin, but I never intended to make a significant investment," Michl added. 

The Czech Republic is not the only country apparently considering cryptocurrency purchases. In September 2021, El Salvador became the first country to roll out an official bitcoin treasury program, though in the years following many politicians around the world — including in the U.S. — have outlined plans to buy bitcoin as a strategic investment. 

As the ČNB continues to explore diversification strategies, Michl said the bank is also focused on increasing its gold holdings. The bank plans to increase its gold reserves to approximately 5% of total assets by 2028, continuing the trend of adding more traditional assets to its portfolio.

Czech law exempts long-term bitcoin holdings from capital gains tax

The news follows the Czech government's approval of a capital gains tax exemption for long-term bitcoin holdings in early December. Last month, the Czech Republic passed a law that exempts bitcoin holdings of over three years from capital gains tax. This legislation, which was unanimously approved by the Czech parliament on Dec. 6, took effect on Jan. 1.

According to the Czech news site  Parlamentní Listy , the new tax exemption law sets clear criteria for excluding cryptocurrency transactions from personal tax payments.

"Individuals can benefit from these exemptions if their total gross annual income from cryptoasset transactions does not exceed CZK 100,000 ($4,000)," the Czech media outlet said. "Additionally, digital assets held for more than three years before being sold are also eligible for tax exemption, encouraging long-term holding strategies."

Prime minister of the Czech Republic Petr Fiala also explained in an X post that cryptocurrencies sold after more than three years will not be taxed. "We pushed for better conditions for cryptocurrencies, and make life easier for people and support modern technologies," Fiala said.

To further qualify for the tax exemption, digital assets must not have been part of business assets for at least three years after ceasing self-employment. The new framework also applies retroactively in certain cases. Digital assets acquired before 2025 can still qualify for tax exemptions if they are sold under the specified conditions in subsequent tax years.