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Czech President Enacts Crypto-Friendly Law, Bitcoin Reserve Next?
- The Czech Republic has achieved unprecedented political unity in adopting crypto-friendly regulation through the implementation of the EU’s MiCA framework, which will provide clear rules for taxation and banking access.
- The Czech National Bank is also considering a significant investment by planning to allocate up to 5% of its âŹ140 billion assets to Bitcoin.
- The move stands in stark contrast to the attitudes of the ECB and US Federal Reserve, where officials have strongly rejected the idea of Bitcoin as a reserve asset.
The Czech Republic is moving closer to crypto-friendly regulation, a report by the Czech Cryptocurrency Association (CKMA) shows.
According to CKMA, the President of the Czech Republic, Petr Pavel, has signed a law to regulate the countryâs crypto industry.
Related: CFTC to Refocus on Fraud, Major Shift Away From âRegulation by Enforcementâ
In a press release, the CKMA stated that it had long worked to âlevel the business playing field in the Czech Republicâ for the crypto sector, while educating on the benefits that crypto can bring to the domestic economy.
Czech Republic Advances MiCA Rules
FrantiĆĄek Vinopal, the chairman of the CKMA said the governmentâs proposal was âunthinkable a few years ago, but now all present lawmakers have agreedâ.
This unprecedented unity among political parties is the result of not only the association’s efforts but also the entire Czech crypto community, which has managed to unite.
FrantiĆĄek Vinopal, CKMA chairman The proposal implements the European Unionâs MiCA (Markets in Crypto-Assets Regulation) laws, provides rules around taxation, ensures âlong-term stability and a predictable environment for entrepreneurs in the industryâ, and enables crypto-related businesses to open bank accounts.
Vinopal also highlighted that beyond being just a fad, crypto can bring multiple benefits to the Czech economy and people:
Cryptocurrencies are not only a technological trend, but a key part of the future Czech economy. This sector has the potential to generate significant revenue for the state budget and create hundreds, if not thousands, of jobs.
FrantiĆĄek Vinopal, CKMA chairman US Fed/ECB Donât Believe in Asset Class
There are other countries in Europe with pro-crypto approaches, such as positive comments from German leaders and initiatives in Switzerland and Liechtenstein.
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In late January the head of the Czech National Bank (CNB), Governor Ales Michl, also announced plans to allocate as much as 5% of its âŹ140 billion (AU$234 billion) asset holdings in Bitcoin.
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This came as Michl said just weeks before that he would only intend to buy âa few Bitcoinâ.
But not everyone is so enthusiastic about Bitcoin and Co.
The European Central Bank (ECB) President, Christine Lagarde, said during a presser, that Bitcoin has no place in the âreserves of any of the central banks of the General Councilâ.
Perianne Boring from the Digital Chamber in the US, said that during a meeting with the board of governors of the US Federal Reserve System, it came to light that the âFed hates the idea of a Bitcoin reserveâ.
Boring said the governors were âcussing, saying this is the dumbest idea theyâve ever heardâ, while adding that she was almost kicked out of the meeting as she was told thereâs ânothing strategic about Bitcoinâ.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
