Bitcoin Breaks European Union: Czech Republic and Luxembourg Announce BTC Holdings
European countries, including Luxembourg and the Czech Republic, are increasingly adopting Bitcoin as a strategic reserve asset to hedge against inflation and macroeconomic uncertainty. Luxembourg has allocated 1% of its sovereign wealth fund (€7 million) to Bitcoin, as announced by Finance Minister Gilles Roth at the Bitcoin Amsterdam 2025 conference. Similarly, the Czech Republic's National Bank has created a test portfolio of digital assets, primarily Bitcoin, to explore its adoption. This trend indicates growing confidence in Bitcoin as a reserve asset, further driven by decreasing supply on centralized exchanges and rising global demand.
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Luxembourg and Czech Republic Lead Bitcoin Adoption
Luxembourg’s Finance Minister Gilles Roth announced that more countries are contemplating adopting Bitcoin in their sovereign funds. Similarly, the Czech Republic revealed its decision to allocate 1% of its assets (€7 million) to Bitcoin. While EU President Christine Lagarde has previously dismissed Bitcoin’s value, advocating for gold instead, several European countries are embracing Bitcoin as a strategic reserve asset.
European Shift Towards Bitcoin as a Hedge Against Macroeconomic Challenges
European countries are adopting Bitcoin (BTC) as a strategic reserve asset to hedge against inflation and macroeconomic uncertainty. This movement has been inspired by initiatives such as President Donald Trump’s policy to implement a strategic Bitcoin reserve for the United States. As a result, the European nations are following a similar path to safeguard their national economies.
Luxembourg’s Sovereign Wealth Fund Allocates to Bitcoin
On November 13, during the Bitcoin Amsterdam 2025 conference, Luxembourg’s Finance Minister Gilles Roth confirmed that the nation has adopted Bitcoin. The country has allocated 1% of its sovereign wealth fund (€7 million) to the cryptocurrency, signaling its intent to lead in Bitcoin adoption. Roth emphasized that Luxembourg aims to be among the early adopters of Bitcoin as more nations are implementing similar strategies.
Czech Republic’s Test Portfolio of Bitcoin
The Czech National Bank (CNB) announced the creation of a test portfolio of digital assets, predominantly Bitcoin. According to Aleš Michl, Governor of CNB, the plan for this digital asset portfolio has been in development since early 2025.
The CNB’s test phase will evaluate processes such as:
- Technical administration of keys
- Multi-level approval processes
- Security mechanisms and crisis scenario management
- AML compliance verification
This meticulous approach demonstrates the Czech Republic’s resolve to incorporate Bitcoin despite differing advice within the EU framework.
Market Impact of Bitcoin Adoption in Europe
The increasing adoption of Bitcoin by European countries represents a significant vote of confidence in the cryptocurrency. Bitcoin has already seen mainstream adoption through various channels, including exchange-traded funds (ETFs), Digital Asset Treasuries (DATs), family offices, and individual investors.
As reported by CryptoQuant, the global adoption trend has led to a multi-year low in Bitcoin’s supply on centralized exchanges. With its fixed supply of 21 million coins, and many held by long-term investors, this growing acceptance by nation-states is poised to intensify demand further.