Czech Republic proposes constitutional protection for koruna and cash

The Czech government is advancing a proposal to formally anchor the Czech koruna as the national currency within the country's constitution. The cabinet has approved a draft law that seeks to establish the currency as a “key to our economic sovereignty.”

In addition to protecting the koruna, the government intends to propose a separate constitutional amendment to safeguard the right to hold and use cash as legal tender. This move aims to prevent cash from being marginalized by the ongoing digitalization of payment systems.

While Czechia is committed to adopting the Euro once specific criteria are met, enshrining the koruna in the constitution would require a formal constitutional amendment to facilitate any future transition to the Eurozone. Observers note that this move could increase political pressure regarding EU monetary obligations. To pass, the amendment requires approval from at least 120 of the 200 members of the Chamber of Deputies and a three-fifths majority in the Senate.