More Eurozone Nations Are Likely to Adopt Bitcoin, Says Coinbase's Institutional Chief

In a surprising new development, an experiment taking place in Prague may have significant implications for Bitcoin, surpassing the usual discussions about ETF inflows.

Key Takeaways

The Czech National Bank has started testing Bitcoin, which may influence other Eurozone nations.
D’Agostino highlights the significance of institutional adoption beyond regulatory clarity.
The emergence of Bitcoin spot ETFs creates a new demand for Bitcoin from institutional players.
The gradual acceptance of Bitcoin by conservative monetary institutions, like central banks, could reshape its reputation and use in traditional finance.

More Eurozone Countries Will Buy Bitcoin, Says Coinbase’s Institutional Chief

John D’Agostino, Head of Institutional at Coinbase, remarked during the “Crypto In America” show on December 10 that the Czech National Bank is testing Bitcoin for its national treasury and payments. He predicts that this initiative by a Eurozone central bank could inspire similar actions across more countries within the Eurozone.

Czech Bitcoin Experiment May Influence Eurozone

According to D’Agostino, the Czech National Bank carefully selected its service providers as it begins to integrate Bitcoin into its national treasury. He pointed out that while the pilot program involves a modest investment of "a million dollars of Bitcoin," the importance lies not in how much they are investing but rather in the institution's decision to initiate this experiment.

He intentionally contrasted this effort with earlier state-sponsored initiatives. “No disrespect to El Salvador… this wasn’t a ‘I want to shake up my economy because I’m heading in the wrong direction’… This is, we are a stable Eurozone country… we don’t have to do this,” he explained.

The Czech Republic's initiative appears to be following formal procedures typical of traditional banking practices, including requests for proposals, vendor selection, and official policy adoption. D’Agostino warned that this approach could be influential: “That type of thing is contagious and I can see more Eurozone [countries] following suit very very shortly,” he stated.

During the interview, D’Agostino consistently emphasized that institutional adoption is not primarily dependent on having perfect regulatory clarity. Instead, he believes it relies more on liquidity, a reliable market structure, and the presence of credible market participants.

“I’ve always been a bit of a skeptic on the argument that the reason institutions haven’t invested… is regulatory clarity,” he noted. While regulatory clarity is important, in D’Agostino's view, it ranks after liquidity and potential returns. If two of these three conditions are met, he believes that “people will find a way” to invest.

From his perspective, the arrival of Bitcoin spot ETFs has created a structured demand for the asset that it previously lacked. “The ETFs, in my view, are kind of the surrogate commercial users of Bitcoin,” he claimed. These ETFs “have to rebalance… it’s codified into their business model,” acting as a stabilizing influence akin to how industrial users operate in commodity markets.

The decision by a Eurozone central bank to experiment with Bitcoin on its balance sheet marks a critical step forward. While D’Agostino did not articulate a comprehensive theory for Bitcoin as a reserve asset, the implications are evident: when a central bank with access to regular EU funding “doesn’t have to do this” but still chooses to, it lends legitimacy to Bitcoin within the more conservative layers of the monetary framework.

D’Agostino believes that the cryptocurrency industry also has some reputation-building to do. He argues that despite crypto’s structural failures being comparable to those in other markets—like the London Metal Exchange's cancellation of billions in nickel trades—crypto tends to elevate less reputable figures, whereas traditional finance (TradFi) does a better job of concealing its problems.

With clearer narratives, ETF-driven demand, and a Eurozone central bank discreetly integrating a million dollars into Bitcoin, D’Agostino argues that the institutional interest is more about a slow, steady shift rather than an overwhelming surge. “There’s no wave,” he commented. “It’s this gradual erosion as opposed to this crashing wave.”

If D’Agostino's predictions are correct, we may soon see this gradual change occurring not just through asset managers in New York but from within the Eurozone system itself. At the time of this report, Bitcoin was trading at $90,234.

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