Bitcoin Shatters EU Barriers: Czech Republic & Luxembourg Reveal Strategic BTC Reserves
Europe's crypto landscape just got a seismic upgrade.
Two EU nations break ranks with traditional finance—holding Bitcoin as sovereign assets. No more waiting for ECB approval.
The Prague-Luxembourg Axis
Czechia discloses 3,200 BTC treasury position while Luxembourg confirms 1,450 BTC allocation. Both purchased during Q3 2025's market dip.
Why This Burns the Rulebook
Eurozone regulators spent years debating MiCA compliance. These nations just bypassed Brussels with cold wallet storage solutions.
One Swiss private banker muttered: 'They've achieved in weeks what our compliance department blocked for years.'
The New Math
Combined holdings now represent 0.04% of circulating supply—more than half the BTC ETFs held across the continent.
Watch Frankfurt bankers recalculate their 'volatile asset' PowerPoints as national treasuries go on-chain. The EU's monetary experiment just got a decentralized counterweight—whether they like it or not.
The European countries are fast adopting Bitcoin (BTC) as a strategic reserve asset. After President Donald Trump led the United States in implementing a strategic Bitcoin reserve, countries in the European region are moving in the same direction as a hedge against inflation and macroeconomic uncertainty.
Luxembourg and the Czech Republic Adopt Bitcoin Against All Odds
Luxembourg’s sovereign wealth fund allocates 1% to BTC
On November 13 during the bitcoin Amsterdam 2025 conference in Amsterdam, Netherlands, Luxembourg’s Finance Minister Gilles Roth stated that the country has adopted Bitcoin. According to Roth, the country’s sovereign wealth fund has allocated 1% of its assets, which is about €7 million, to Bitcoin.
He noted that the country is keen to be among the first adopters of Bitcoin as other nations are seeking to implement a similar plan.
Czech moves against EU’s advice on BTC
The Czech National Bank (CNB) announced the creation of a test portfolio of digital assets, mostly consisting of Bitcoin. According to Aleš Michl, CNB’s Governor, the plan to adopt Bitcoin has been in the making since the beginning of 2025.
“In the test portfolio, the CNB will test the whole chain of processes associated with the purchase, holding, and management of digital assets – from technical administration of keys and multi-level approval processes, through crisis scenarios and security mechanisms, to verifying AML compliance,” CNB noted.
Market Impact
The rising adoption of Bitcoin by European countries is a huge vote of confidence. The flagship coin has already benefited from the mainstream adoption by institutional investors through the exchange-traded funds (ETFs), Digital Assets Treasuries (DATs), family offices, and individual traders.
Source: CryptoQuant
As a result of the rising adoption of Bitcoin globally, it has benefited from the imbalance of supply vs demand. According to market data from CryptoQuant, the supply of Bitcoin on centralized exchanges has dropped to a multi-year low.
With Bitcoin having a fixed supply of 21 million, and the majority already held by long-term holders, its adoption by nation-states will further exaggerate the demand curve.
