The new Czech virtual currency, Czech Crown Coin (officially named by the authors “CZC”) was for the first time offered to public yesterday (Tuesday 19th August) at noon, within the press conference held by its founders. The interest of the public in purchasing the CZC was bigger than expected. The pre-mined amount released in the initial edition of 100,000 CZC was sold out within the next nine and half hours, whereby a third of this limited amount was sold already within the first hour! It is planned that within the next days, an additional set of 100,000 CZC will be offered to the public. After these ten days (on Monday 29th) an exchange platform should be opened on the official website of CZC.
This new virtual currency might however become very interesting also from the miners’ point of view, as with the same technical equipment they should be able to achieve higher gains from the mining activity than they would when mining other well known virtual currencies.
As indicated by the founders of CZC, the initial goal of this project was to support Czech e-business. From the first day it would appear that the project has been meeting its goal, as public is obviously interested in buying CZC and getting involved in this virtual world. From this point of view, it is important to point out that the currency reached yesterday to 1.25 CZK for 1 CZC, which made it more expensive than the official Czech currency, as well as the 16th most expensive virtual currency in the world. Even though this is very good result after the first day on the market, considering the high volatility of the virtual currencies it will be more interesting to observe the next evolution of this currency.
The authors are now having a new goal, which is, to make CZC to a massively used mean of payment. With this respect they are undertaking various steps in order to reach this goal, such as getting in touch with various Czech retailers who are already involved in e-business and could accept CZC as consideration for their supplies. As the area of virtual currencies is currently not regulated by Czech law, the expansion and usage of these type of currencies will for sure open new discussions concerning the tax and legal implications. Taxation concerns all the involved persons, starting by miners, through owners of the currency and retailers. All activities must be thoroughly reviewed with respect to corporate, personal income tax as well as VAT taxation. PwC is monitoring the development in various countries in order to understand all potential queries our clients might have and to be able to support them in this legal vacuum.
Should you be interested in obtaining more information on CZC or other virtual currencies, please contact our subject matter specialist:
Ms Petra Safkova
+41 58 792 9543.