The Czech Republic is currently in the research phase. Vojtěch Benda, a member of the Czech National Bank board, said, “I would imagine that a [CBDC] would copy the functioning of cash a lot. My personal idea is that I would have a wallet in my mobile phone, which I would recharge from my account or from an ATM and then paid with money that is anonymous and no one tracks transactions with it.” However, it does not appear that this concept has been formalized at this time. Elsewhere, Tomas Holub, another member of the Czech National Bank board, said, “I'm not sure that politicians have the will to entrust us with that authority” when speaking of CBDC capabilities and that he has not seen anyone adequately address how a CBDC will operate. For example, Holub noted that it’s unlikely to be anonymous given anti-money laundering requirements.

The Czech Republic earned a 92 out of 100 in Freedom House’s 2023 Freedom in the World report. Although a relatively high score, the country still experiences issues with corruption. The issuance or adoption of a CBDC in the Czech Republic could worsen this issue. However, it must be said that the ability of the government in the Czech Republic to abuse a CBDC directly is debatable because the CBDC that would be used in the Czech Republic would be provided by the European Central Bank—representing the European Union.

“Corruption remains a problem in Czech politics,” according to Freedom House. Corruption has taken the form of bribery, subsidies, and politically motivated investigations. The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.