The Czech Republic: "royal" currency under the pressure of the crypto world
AraneoBit goes on with the stories about the monetary systems. The articles are devoted to the countries where the company is going to open offices. Today we are moving to the very heart of old Europe.
Czechia, or the Czech Republic, is small in size, but is of great cultural heritage. The state is located in Central Europe. The country borders on Poland, Slovakia, Austria, and Germany. To the whole world, the Czech Republic is famous for its original historical monuments, magnificent castles and ancient houses, dramatic history and delicious beer and, of course, “pečené vepřové koleno” — roast pork knuckle.
As for the currency, Czech people are both conservative and patriotic at the same time. Despite the fact that the country has been a member of the European Union since 2004, it does not hurry to adopt the euro. The state prefers the good old Czech crown (KČ) to it. This currency has been in use since 1993.
Let's take a short historical journey and observe the formation and development of the monetary system on the territory of the Czech Republic from time immemorial.
Why the crown? And what was "before"?
The name "crown" or “koruna” in Czech, is translated literally "a crown". On this land, money was considered a symbol of immutable royal power. However, the crowns were not used at the Czech court since the dawn of time. The first known currency was the silver (Bohemian) denarius. It was in the circulation from the middle of the 9th to the 13th century. Over time, Czech coiners added copper to the silver alloy. Due to that the coin "thinned out" and lost more than ½ of its original weight. Gradually, it began to lose its value. Obviously, the Great of the World couldn’t fail to pay attention to this fact.
"Silver Age" à la Czech
The Czech land has always been rich in silver mines. There have been times when the country even exported vast amounts of silver to other countries. In Kutná Hora, a town of miners, there were even "Silver Rushes" on a medieval scale.
In the 13th century, on the initiative of Přemysl Otakar II, the Iron and Golden King, all the coins in the Czech Kingdom were minted only from silver. The image of a Czech lion with a forked tail appeared on the coins for the first time. Under the reign of the wise Charles IV in the 14th century, small-sized coins called "hellers" came into use. Large coins of silver appeared in 1518 and were called "Joachimstaler" by the name of a massive mine.
From Modern to Contemporary times
In the XIX century, the Czech lands were a part of the Austro-Hungarian Empire. In those days a single currency was in use which had already received the familiar name "koruna". One crown included 100 hellers. The first Czechoslovak Republic took over this monetary unit, and, as it has been mentioned above, used this currency before the dissipation of a state in 1993.
What's happening with the currency in the Czech Republic today
The Czech Republic and Slovakia each followed their own money path. The neighboring republic eventually accepted
the euro, but the Czech Republic is still stuck to the crown. Is it good or bad for the country? There is no universal opinion, but the Czechs are quite happy with what they have. However, there are everyday nuances, and we will tell you about them later.
Today in the Czech Republic people use coins of 1, 2, 5, 10, 20 and 50 crowns denomination. Banknotes have a nominal value of 100, 200, 500, 1000, 2000 and 5000 crowns — a thousandth banknote is being the most running. Hellers were withdrawn from circulation in 2008. It is interesting to learn that coins of different denominations have different shapes and sizes. Round coins are coins of 1, 5, 10 and 50 crowns denomination. Coins of 2 and 20 crowns have 11 and 13-gonal form, respectively. On each currency unit, there is an inscription "ČeskáRepublika".
Business on rate differences and other tricks
Well, now we’re going to tell you about the nuances of using the crown. Despite the notorious monetary patriotism and the desire to keep traditions (what the Czechs are famous for), the convenience of using a single currency in the One Europe is somewhat doubtful. First of all, this is quite essential for tourists — there are lots of them in the Czech Republic. At least 7 million fans of Gothic architecture and delicious food come to Prague every year. And each tourist has to walk around exchangers and buy crowns!
Some enterprising Czechs make money on gullible tourists: in the places of the tourist interest some exchange rates can just be a real "rip-off". In a bank, 1 euro costs 25 CZK. If a cup of hot mulled wine (Gluhwein) and stunning Prague sausages in the Old Town Square beckon you, this pleasure will cost you 120 crowns (4.76 euros) But if you run out of crowns, the same snack would cost you 6-7 euros!
Hidden charges and other tricks only add fuel to the fire.
Currency rates in the exchange offices is basically a story in its own right. A naive tourist can see one rate but receive much less money than he expected. In this regard, the workers of the exchange office have an excellent excuse: they “didn’t have time to change the old rate to a new one”. And even if you can see a NO COMMISSION sign, please don’t rush to change your money there. Before making a deal, always ask to calculate how many crowns you will receive if you decide to exchange money here. Then you can calculate whether you are ready for this deal or not.
Are you sure that one can manage without crowns in the Czech Republic? The vast majority of bars and pubs don’t accept cards, and you have to go and change your money. Unfortunately, many exchange points got used to profit from tourists — and this situation may leave a gall in your mind.
Let's say "No!" to currency retrogradism!
At the same time, the Czech Republic has become one of the first countries where cryptocurrencies came into general use. Some cafes already accept bitcoins as payment. Regulators are not in a hurry to introduce restrictive business practice. Some businessmen call Prague the cryptocurrency capital of Europe — many conferences, meetings, seminars, meetups are regularly arranged here. A considerable number of crypto-enthusiasts opens offices of their companies in the Czech Republic. This is particularly true for businesses that are in the batter's box now in their countries of origin.
It's no wonder that AraneoBit is enthusiastically weaving its p2p-web into
this beautiful small European country. There are many opportunities to cast a net and get a great benefit for everybody here. This news will be exceptionally warm welcomed by the guests of the Czech Republic. We are sure that over time crown speculation will fall off the edge of the earth: that will give way to cross-border digital financial flows. We believe that it would happen as the Czech Republic has all the preconditions for this.
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