The Czech Republic’s decision to exempt Bitcoin from capital gains tax for long-term holders marks a significant step toward increasing Bitcoin adoption both within the country and across the EU.

This policy incentivizes long-term investment, encouraging a more stable buy-and-hold strategy while reducing short-term volatility.

Furthermore, if the Czech Central Bank follows through with its plan to allocate 5% of its €140 billion reserves to Bitcoin—approximately 75,000 BTC—the country could become the third-largest sovereign Bitcoin holder, surpassing the United Kingdom, Germany, and Ukraine.

While the European Central Bank opposes such initiatives, the Czech Republic’s independent monetary policy allows it to operate outside ECB constraints.

If successful, this approach could prompt other European nations to reconsider their stance on Bitcoin, potentially driving broader institutional adoption across the region.

Gracy Chen, CEO at Bitget