Bitgate Exchange CEO Grassi Chen has highlighted major developments in the Bitcoin’s perspective of the Czech Republic.
Chain noted If the Czech National Bank proceeds with its proposal to allocate 5% of its € 140 billion foreign reserves, the country can become the third largest bitcoin (BTC) holder in the world, which crosses nations like United Kingdom, Germany and Can, and Ukraine.
He also emphasized the new capital gains tax exemption for BTC, which has been over three years, which encourages long -term adoption.
Unlike many European countries, the Czech Republic is not bound by European central bank policies, possibly affecting other countries to follow its leadership.
Czech Republic’s bitcoin reserve
The Governor of CNB, Aleš MICHL has proposed to invest up to 5% of the bank in bitcoin to diversify the property. He believes that such investment may increase the profitability of bank’s reserves.
However, the proposal has criticized bitcoin due to high volatility and related risks. Critics argue that central banks should prioritize liquidity, stability and capital protection on speculative investment.
In addition to the proposed reserve allocation, the Czech Republic has implemented a law to exempt bitcoins from capital gains tax when it was held for more than three years. This law, signed by President Petra Pavel, aims to encourage long-term investment in cryptocurrency and align the country’s crypto rules with the European Union markets in the Crypto-asset Framework.
