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Czech Republic Plans BTC Reserve Before U.S.—Is the Crypto Race On?

Business
Updated: 1/30/2025
Czech Republic Plans BTC Reserve Before U.S.—Is the Crypto Race On?
#Bitcoin #CryptoAdoption #CryptoReserves
As the U.S. debates creating a Strategic Bitcoin Reserve (SBR), the Czech Republic is moving ahead with plans to become the first European nation to hold BTC in its central bank reserves. This marks a significant shift in the global Bitcoin race, as multiple countries and corporations seek to secure BTC holdings.

Czech Republic’s Bold Bitcoin Move

Czech National Bank (CNB) Governor Aleš Michl will introduce a $7.3 billion BTC acquisition plan on January 30, 2025. If approved, Bitcoin will account for 5% of the CNB’s $146 billion reserves, positioning the country as a crypto leader in Europe.

This decision comes amid growing institutional acceptance of Bitcoin as a strategic asset, similar to gold. Previously, CNB advisors dismissed Bitcoin as a reserve asset, but increasing market adoption has changed perspectives.

Where Does the U.S. Stand on a Bitcoin Reserve?

The U.S. is considering multiple models for a national Bitcoin reserve. President Donald Trump has backed the idea of stockpiling seized BTC and not selling it. Meanwhile, Senator Cynthia Lummis has proposed a 1-million BTC acquisition over five years, with holdings locked for 20 years.

Despite speculation that Trump would immediately sign the SBR proposal, his administration has opted for a more cautious approach. Instead, Trump has ordered the Digital Assets Subcommittee to submit reserve criteria by July 2025.

Meanwhile, states like Texas, Ohio, and Pennsylvania are pushing for their own state-level Bitcoin reserves, with Pennsylvania proposing a 10% budget allocation for BTC purchases.

Other Countries Enter the Bitcoin Race

Bitcoin reserves are gaining traction globally:

  • El Salvador pioneered BTC adoption as legal tender and holds 6,000+ BTC.
  • Brazil passed legislation to allocate 5% of its reserves to Bitcoin, backing its CBDC with BTC.
  • Russia & Japan have considered BTC reserves but delayed decisions.
  • Poland’s libertarian presidential candidate, Sławomir Mentzen, proposes a BTC reserve if elected.

Countries like the UK, Ukraine, and China hold seized BTC, but do not yet classify them as national reserves. Reports suggest China may control over 190,000 BTC, though this remains unverified.

Corporate Giants Join the Bitcoin Reserve Movement

Leading firms are also stockpiling Bitcoin:

  • BlackRock holds 500,000+ BTC, surpassing El Salvador’s reserves.
  • MicroStrategy has accumulated over 10,000 BTC as part of its treasury strategy.

Is the Crypto Arms Race Underway?

As governments and corporations accelerate Bitcoin accumulation, the race isn’t just about reserves. Countries are exploring BTC mining, crypto-friendly policies, and even legal adoption.

With Czech Republic’s move, the pressure is on for the U.S. and other nations to secure their position in the crypto economy before they fall behind.