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Bitcoin Breaks European Union: Czech Republic and Luxembourg Announce BTC Holdings

Published by
Steve Muchoki

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.

Steve Muchoki

Steve is a crypto news writer with a passion for decoding market moves. He blends breaking blockchain news with sharp technical analysis and bold price predictions. From Bitcoin rallies to altcoin breakouts, Steve breaks it all down with clarity and insight. Whether you're a trader or just curious, his analysis keeps you ahead of the curve.

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