Cryptos Considered Hard Currencies

Like many other nations, which do not have the luxury of emitting a "hard" national currency, Czechs may consider investing some of their savings in foreign, "convertible", legal tender, like the dollar or the euro. Surprisingly, a new survey shows neither of these two is the number 1 choice for investment. The study, quoted by local media, was conducted among 525 people this month.

Czechs are still wary of cryptocurrencies, according to the survey. Nevertheless, cryptos, like bitcoin and ethereum, have become the most popular currencies, when it comes to investment opportunities. Almost 11% of the respondents in an Ipsos poll admitted they were thinking about acquiring digital coins. Fewer Czechs said they would consider buying euros – 10.3%.

Since its "liberalization", the Czech koruna (CZK) has been fairing pretty well. It appreciated against the euro after the Czech National Bank lifted the cap last April. Almost a third of Czech people (30%) trust their free-floating fiat now, the survey found out. The second most trusted traditional currency in Czechia is the Swiss franc (26%).

Left unchecked, however, the koruna may depreciate at some point. When a national currency goes down, prices of imported goods inevitably go up. With floating koruna, Czechs may start to look around, more often than before, for alternatives to diversify their investments and spread the risk for their savings.

Bitcoin Also Wanted As Cash

The euro might sound like an obvious choice, but it has never been very popular with the Czech people. Several years ago, the government in Prague suspended indefinitely plans to adopt the common European currency. Multiple surveys have indicated a very low public support for entering the Eurozone, well below 20%. The Ipsos poll for Topforex also found that the euro has slipped to third place among trusted fiat currencies in the Czech Republic.