An experiment in Prague could ultimately have a greater impact on Bitcoin than the typical ETF flow charts. During a December 10th appearance on the “Crypto In America” show, John D’Agostino, Head of Institutional at Coinbase, noted that the Czech National Bank has started testing Bitcoin for its national treasury and payment systems. He suggested this type of initiative by a Eurozone central bank is likely to catch on.
“The Czech national bank chose their service providers very well,” D’Agostino stated, explaining that the bank is “adding Bitcoin to their national treasury and is actively experimenting with and learning how to use it for payments in real time.” While the pilot program is modest—involving about a million dollars in Bitcoin—D’Agostino believes the significance lies not in the amount, but in who is conducting the experiment and why.
He drew a clear distinction with earlier national experiments, saying, “No disrespect to El Salvador… this wasn’t a case of ‘I need to shake up my economy because it’s heading in the wrong direction’… This is a stable Eurozone country… they don’t have to do this.” Instead, the Czech initiative followed a traditional, formal process complete with RFPs, vendor selection, and official policy adoption. According to D’Agostino, this structured approach is precisely what makes it a potential challenge to the status quo. “That type of thing is contagious, and I can see more Eurozone [countries] following suit very, very shortly,” he added.
This comment was part of a broader argument D’Agostino made throughout the interview. He consistently emphasized that institutional adoption has always depended less on perfect regulatory clarity and more on liquidity, credible market structure, and having the “right” participants involved. “I’ve always been a bit skeptical of the argument that the reason institutions haven’t invested… is a lack of regulatory clarity,” he said. While clarity is important, ranking in his “top three,” it comes after liquidity and alongside the potential for alpha. If two of these three conditions are met, “people will find a way.”
In his view, Bitcoin’s spot ETFs have already introduced something the asset previously lacked: a group of structurally obligated participants. “The ETFs, in my view, are kind of the surrogate commercial users of Bitcoin,” he argued. They “have to rebalance… it’s codified into their business model,” functioning as a stabilizing force similar to industrial users in commodity markets.
A Eurozone central bank testing Bitcoin on its balance sheet takes this logic a step further up the chain. D’Agostino didn’t elaborate a grand theory of “Bitcoin as a reserve asset”—he was measured and careful in his wording—but the implication was clear: when a central bank with access to standard EU funding, which “doesn’t have to do this,” chooses to proceed anyway, it helps normalize Bitcoin within the most conservative layer of the monetary system.
He also addressed the industry’s ongoing need for reputational repair. D’Agostino argued that crypto has experienced no more structural failures than other markets, citing the London Metal Exchange’s cancellation of billions in nickel trades as an under-discussed parallel to FTX. However, he noted that crypto “tends to push the jokers to positions of prominence,” while traditional finance “does a good job of hiding their jokers.”
Between improving narratives, ETF-driven “surrogate” demand, and now a Eurozone central bank quietly allocating a million dollars to Bitcoin, D’Agostino’s overall message was that institutional adoption is less about a sudden surge and more about gradual, persistent erosion. “There’s no wave,” he said earlier in the discussion. “It’s this gradual erosion as opposed to this crashing wave.” If his prediction about the contagious nature of the Czech experiment holds true, that erosion may soon be occurring from within the Euro system itself.The interest in Bitcoin extends beyond just asset managers in New York. At the time of writing, BTC is trading at $90,234. The featured image was created with DALL·E, and the chart is from TradingView.com.
Frequently Asked Questions
FAQs Eurozone Nations Bitcoin Purchases
BeginnerLevel Questions
1 What does it mean that Eurozone nations are set to purchase Bitcoin
This means that countries that use the Euro as their currency are reportedly considering adding Bitcoin to their national financial reserves similar to how they hold gold or foreign currencies
2 Who is Coinbases head of institutional business and why is their statement important
This refers to a senior executive at Coinbase a major cryptocurrency exchange Their statement is considered significant because they have direct insight into discussions and trends among large financial institutions and governments
3 Why would a country want to buy Bitcoin
Countries might consider Bitcoin as a potential store of value to diversify their national assets hedge against inflation or gain exposure to a new globally traded digital asset class
4 Is this actually happening right now
No this is based on a reported trend or discussions not an official announcement of a specific purchase It suggests growing interest at a governmental level
5 What is the Eurozone
The Eurozone is the group of 20 European Union countries that have adopted the Euro as their official currency like Germany France Italy and Spain
Advanced Practical Questions
6 Which Eurozone nations are most likely to be considering this
While not specified nations with more progressive digital asset regulations larger economies or those seeking economic innovation are often seen as potential early adopters However this is speculative
7 How would a country actually buy and store that much Bitcoin
It would likely be a complex process involving regulated custodians executed through overthecounter trading desks to avoid disrupting the market with strict security protocols
8 What are the biggest risks for a nation holding Bitcoin
Major risks include Bitcoins extreme price volatility potential security breaches evolving regulatory uncertainty and the environmental concerns associated with its energy consumption
9 How would this affect the price of Bitcoin and the crypto market
Largescale national purchases could significantly increase demand potentially driving the price up It would also be seen as a major vote of confidence likely boosting overall market sentiment and legitimacy
10 Has any country done this before
Yes El Salvador made Bitcoin legal tender in