Czech Republic CBDC Tracker

The Czech Republic is currently in the research phase of its central bank digital currency (CBDC) development.

Note: The Czech Republic is a member of the European Union, but it is not a member of the Eurozone.

CBDC History and Development

In February 2020, Vojtěch Benda, a member of the Czech National Bank board, gave a presentation on the future of cash at the World Banknote Summit. Amidst the rise of CBDCs, Benda pointed out that “cash is still king.”

In July 2020, Tomas Holub, a 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. He further said 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.

In May 2021, 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.”

In July 2023, Czech National Bank official Derviz Alexis said that the “prime reason for CBDCs was to defend monetary sovereignty in the new world of private digital assets.” He later added that “the whole vision of internationally integrated retail CBDCs may hit a wall of disinterest at the same time as more and more retail customers, dissatisfied with legacy international payment models, migrate to private crypto solutions.” Reflecting on this possibility, Alexis said, “Regulated financial institutions are much more easily “convinced” to participate in such pilots than private individuals.”

In December 2023, the Czech National Bank published a paper investigating the implications of CBDC use on foreign exchange.

In December 2024, the Czech National Bank hosted a workshop to discuss CBDCs. Presentations covered holding limits, disintermediation, financial stability, and other topics.

Human Rights and Civil Liberties Concerns

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.

“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.