A recent poll about attitude towards currencies other than koruna revealed that Czechs favoured digital currencies more than euros to store value. Further, when asked about acquiring foreign currencies, around 65% of the respondents preferred bitcoin over US dollors.
Cryptos deemed Hard Currencies
The Czech Republic and similar countries do not generate a robust currency and hence, it is only natural for the citizens to see better store of value in other stronger currencies like the USD or Euro. However, the new survey reveals neither make the 1st spot for investment. The study was conducted with a sample of 525 individuals this month, according to local media.
Though Czechs are still wary of cryptos, they have turned to become most popular currency in terms of investment. Almost 11% responded that they were thinking of buying crypto.
Since its deregulations, the koruna has appreciated against the Euro. Almost one-third of Czechs now trust their freely floating fiat.
However, this free floating currency as well may depreciate, which can make imported products significantly costly. And hence, Czechs start looking around for alternatives to diversify their investments.
Bitcoin as Cash
In this case Euro should logically be the best option, however, there is very low trust and interest in joining the Eurozone amongst the Czechs. Interestingly Euro has slipped to the 3rd position in terms of most trusted currencies.
When enquired about acquiring foreign currency in cash, about a half showed interest in Euro, owing to neighbouring nations adopting the Euro, and about 8% showed keen interest in purchasing Cryptocurrencies – half of the same for US Dollar (~4%).
The Czech National Bank tried to undercut the relevance of cryptocurrency and their potential to sideline traditional currency, last year, saying, cryptocurrencies do not have stable purchasing power, and that crypto transactions are equal to only 16% of digital transactions in koruna.
It seems like Czech is catching up as the first sale of real estate of a apartment in Prague took place in bitcoin with a payment of 35 bitcoins, just a couple of months back. Similar instances are cropping up in the country.