The governor of the Czech Republic's central bank, Alex Michl, has expressed concerns over the volatility of bitcoin, stating that its price fluctuations are significantly higher than those of other assets. In a speech at the Bitcoin 2026 conference, Michl noted that while bitcoin could potentially enhance the performance of the bank's reserves, its unpredictability poses a significant risk. The Czech National Bank had previously purchased $1 million in bitcoin as part of a test portfolio to explore the potential of blockchain-based assets. Although a study by the bank found that bitcoin's low correlation with traditional assets could make it a valuable addition to a portfolio, the bank's board ultimately decided against investing its foreign exchange reserves in bitcoin due to its high risk profile.
