Bitcoin and the euro

As in other nations that lack a "hard" national currency, Czechs may consider investing part of their savings in foreign currencies, "convertible," such as the dollar or the euro. To the surprise of many, a recent survey, conducted among 525 people, shows that none of these currencies is the first option for investment.

According to the survey, Czechs still look askance at cryptocurrencies. However, Bitcoin and Ethereum have gained a good margin of preference when it comes to investing. Almost 11% of those surveyed by Ipsos admitted that they were thinking about acquiring digital currencies. Fewer Czechs said they would consider buying euros: 10.3%.

The national currency, Czech crown (CZK), appreciated against the euro after the Czech National Bank lifted control over it in April 2017, allowing it to fluctuate since then.

Almost a third of Czechs (30%) trust their floating currency now. However, the "Czech Crown" could depreciate at some point. When a national currency falls, the prices of imported goods inevitably increase. With this panorama in sight, the Czechs are looking for alternatives to diversify their investments and distribute the risk of their savings.

The euro may sound like an obvious choice, but its time is not here yet. Despite belonging to the European Union, the Czech Republic has indefinitely postponed the adoption of the euro as the national currency. In fact, the euro ranks third, behind the Swiss franc, in the confidence of the Czechs.

Last year, the Czech National Bank tried to play down the role of cryptocurrencies and their potential to displace traditional money, citing their strongest handicap, their volatility.