Josef Tetek is a Bitcoin advocate with interests in the Austrian School of Economics and political philosophy, founder of the Czech and Slovak Ludwig von Mises Institute, author of the books “Bitcoin: Separation of Money and State” and “Enemies of the State, Friends of Freedom”. He also hosts a Bitcoin podcast Stackuj and is an ambassador for Satoshi Labs, the maker of the Trezor hardware wallet.
In an exclusive interview, Josef told ForkLog about the need to separate Bitcoin from other cryptocurrencies, the reasons for the popularity of digital gold in the Czech Republic, and the local community’s attitude to CBDC.
ForkLog: The Czech Republic is the homeland of the Trezor hardware wallet and Slush’s first mining pool. In 2023 there was the BTC Prague conference, drawing many community figures, including Michael Saylor and Giacomo Zucco. It would seem that Bitcoin is very popular in the country?
Josef: Yes, there is quite a large Bitcoin community in the Czech Republic, which has existed for many years. For comparison: the country has about 10 million people, and the most popular Czech YouTube channel about Bitcoin — Bitcoinovej Kanal — has almost 90,000 subscribers.
Since 2017, Bitcoin has been accepted by one of the largest online stores Alza and hundreds of smaller companies. The annual Czech Chaincamp conference even during bear markets attracts about 2,000 participants. About 7,000 people attended BTC Prague that you mentioned.
ForkLog: What do you think explains such popularity of the first cryptocurrency?
Josef: There are several reasons. First, Czechs, by nature, are skeptical of authorities. This is linked to the difficult historical experience of the 20th century, when the country endured monarchy, Nazi occupation and the Communist regime. A vivid example of this skepticism is the fact that the Czech Republic never adopted the euro, even though since 2004 it has been a member of the European Union.
Second, Czechs are natural craftsmen. Early projects such as the Trezor hardware wallet and the General Bytes Bitcoin ATMs appeared in Prague’s hacker circles.
Third reason — the popularity of the Austrian School of Economics. Its adherents have been writing articles and books about Bitcoin for Czech audiences since 2016.
And the ideas of the Austrian School fit very well with Bitcoin’s concept, as its proponents advocate non-interference in the economy by the state. I also share this approach, which is why I named my first book “Bitcoin: Separation of Money and State”.
ForkLog: Natural craftsmen, skeptical of authorities and sympathetic to the Austrian School… Could Satoshi Nakamoto be Czech?
Josef: I think that’s unlikely [laughs]. I prefer the theory that behind the Satoshi Nakamoto pseudonym was Hal Finney. He best fits the criteria for the candidate to be the creator of Bitcoin, including his sudden disappearance.
ForkLog: You yourself spoke at BTC Prague on the topic “Bitcoin vs. Crypto”. Why do you contrast Bitcoin with the rest of the market? Isn’t it better to apply the approach viribus unitis?
Josef: I believe that Bitcoin should be considered as a separate instrument: it is truly decentralised, has no leader and operates with a fixed monetary policy. This is our best chance to separate money and the state.
Most of the other cryptocurrencies are centralised and governed by individual leaders, companies or funds, and thus are susceptible to corruption and regulatory influence.
In some projects like Monero or Zcash there are interesting technical privacy solutions, however Bitcoin, overall, has the best set of qualities that make it the most promising option for global hard money.
ForkLog: In a recent article for Bitcoin Magazine you also contrast Bitcoin with CBDCs. Meanwhile, the Czech Republic can be considered one of the first countries to begin testing central bank digital currencies: in 2000 the project I LIKE Q began, aimed at pegging the virtual currency Q to the Czech koruna…
Josef: To be honest, I never heard of this project until you mentioned it. As I understand, it was launched more than 20 years ago, but, it would seem, never became popular [laughs].
As for the current attempts to launch a CBDC, the Czech National Bank has a working group conducting research in this area. In November 2022 it published a report stating that the digital koruna would bring unknown risks to the financial system. Therefore this issue is unlikely to be considered in the near future.
ForkLog: How does society view such initiatives?
Josef: At the moment no one takes CBDCs seriously: the topic is not widely discussed. However the Czech Bitcoin community is proactively ringing alarms about CBDCs and the dystopian future they would bring.
ForkLog: What is the current state of Bitcoin regulation in the Czech Republic?
Josef: Bitcoin is regulated, as in other EU countries. Exchanges and other cryptocurrency services are required to follow strict KYC/AML procedures.
Nevertheless, P2P cryptoasset exchanges are completely legal, and they provide total privacy to both sides. In the Czech Republic the mobile app Vexl from Satoshi Labs is popular, where you can exchange Bitcoins for cash without KYC.
ForkLog: How, in your view, will MiCA affect the situation?
Josef: Most likely, the new legislation will make trading on regulated platforms much more onerous, without solving the real problem of widespread fraud in the industry.
In short, MiCA will create a false sense of security and build a regulatory moat around incumbent companies.