With the United States gearing up for stricter crypto regulations under the upcoming Donald Trump administration, many countries in Europe and Asia are considering using Bitcoin as a safeguard against inflation and currency depreciation. Aleš Michl, the fifth Governor of the Czech National Bank, finds Bitcoin intriguing as an anti-inflation tool, but he notes that the board members are still struggling to grasp the complexities of its underlying code.
Consequently, the Czech National Bank has expanded its financial portfolio to include gold (approximately 50 metric tons) and foreign currency reserves. Nevertheless, Michl expressed interest in acquiring a small amount of Bitcoins, yet he remains cautious about heavily investing in this digital currency.
Michl pondered over Bitcoin, however, with seven members on our bank’s board, I find that gold should suffice for now. Bitcoin certainly seems intriguing, but its authenticity remains uncertain as we haven’t had a chance to examine the Bitcoin code ourselves.
Czech Republic and Bitcoin Industry
As a researcher, I’ve been closely observing the financial landscape, and it’s evident that my home country, the Czech Republic, is making strategic strides towards cryptocurrency adoption. Our goal is to align with the economic standing of our neighboring powerhouses, specifically Germany and Poland. In the chilly month of early December 2024, a historic decision was made by our parliament, as they unanimously passed a law that grants long-term Bitcoin holders a tax exemption on capital gains.
Significantly, starting from January 1, 2025, the European Markets in Crypto Assets (MiCA) regulation will be enforced. As stated by the country’s regulatory bodies, the use of Bitcoin and crypto assets within their jurisdiction is inevitable, regardless of the government’s stance on the matter.
As a crypto enthusiast based in the Czech Republic, I’ve noticed an exciting trend: local investors and businesses are creating high-worth companies using blockchain technology. Some of these visionaries are even contemplating moving their operations to more favorable jurisdictions to maximize future growth opportunities.
Bigger Picture
In the year 2024, institutional investors widely embraced Bitcoin via regulated investment tools like spot Bitcoin ETFs. Following this trend, many nations have also been adopting similar strategies. The landslide victory of Donald Trump in the 2024 U.S. election underscores the substantial political influence wielded by the crypto community, a fact that no political group can afford to overlook.
Over the last few years, El Salvador’s remarkable success with its Bitcoin initiative has strongly inspired other countries to reconsider their Bitcoin policies. Given that many nations are grappling with high levels of debt relative to their GDP, it seems likely that the adoption of Bitcoin as a means to combat inflation will become widespread in the future.
As a crypto investor, I’ve noticed an intriguing trend: over the past ten years, the value of Bitcoin has consistently surpassed that of gold. With the increasing liquidity of Bitcoin, supported by institutional investors, many experts predict that Bitcoin’s worth will outperform gold in the coming years.
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2025-01-07 23:01