ChainTech Africa

June 21, 2025

The Czech Republic’s coalition government narrowly survived a no-confidence vote in Parliament on Wednesday after weeks of political turmoil sparked by a controversial $45 million Bitcoin donation from a private crypto foundation to a government-backed innovation fund.

The vote, triggered by opposition lawmakers who accused Prime Minister Petr Fiala’s administration of mishandling the donation and lacking transparency, failed to pass by a margin of just 12 votes. While the government has retained power, the scandal has left the coalition bruised and ignited a national debate over the role of cryptocurrency in public finance.

The Donation That Shook Prague

The political firestorm began in early May when the Libertas Crypto Foundation, a decentralized entity based in Switzerland, announced a BTC donation equivalent to $45 million to the Czech National Innovation Fund—a government-sponsored initiative to foster blockchain and fintech startups.

While government officials hailed the contribution as “a groundbreaking gesture of public-private cooperation,” critics quickly raised concerns about lack of regulatory clarity, the anonymous nature of the donor group, and the potential for foreign influence in domestic affairs.

Opposition leader Andrej Babiš called the donation “a Trojan horse wrapped in Bitcoin,” accusing the government of “allowing anonymous donors to buy influence in national policy with untraceable money.”

Accusations of Transparency Failures

Central to the controversy was the decision by the Ministry of Industry and Trade to accept the Bitcoin directly into a government-controlled wallet without prior parliamentary debate or regulatory oversight.

Several lawmakers claimed that the move violated Czech financial ethics laws, and some media outlets reported that portions of the donation had already been converted to fiat and disbursed to early-stage tech firms before any formal audit had been conducted.

“It’s not about opposing innovation—it’s about transparency,” said Michaela Vojtová, a centrist MP who abstained from the vote. “We need rules before we take digital assets into the public treasury.”

Government Defends Move as ‘Visionary’

In an emergency address to Parliament ahead of the vote, Prime Minister Fiala defended the government’s actions, calling the donation “a visionary act of global support” that would place the Czech Republic at the forefront of the European digital economy.

“We did not solicit this donation—but we recognized its potential,” Fiala said. “This is an opportunity to lead in Web3 and financial innovation. To reject it would be to cling to the past.”

Fiala also announced the formation of a special oversight committee and a new legal framework for handling crypto donations to state entities, signaling a potential policy shift to accommodate the growing influence of digital assets in public finance.

Markets and Public Opinion React

Despite the political tension, Czech financial markets remained largely stable. The Koruna (CZK) held steady against the euro, and the tech sector—particularly domestic blockchain startups—welcomed the government’s survival as a signal of continued support.

Public opinion, however, remains divided. A ČTK poll released Wednesday showed 52% of respondents believed the donation should have been subject to more scrutiny, while 38% supported the government’s handling and praised its forward-looking approach.