According to Alex Michl, Governor of the Czech Republic's central bank, incorporating bitcoin into the bank's reserves could enhance performance due to its low correlation with traditional assets, potentially leading to higher returns without significantly increasing risk. However, Michl expressed concerns over bitcoin's high volatility, citing the possibility of its value plummeting to zero. This volatility, he noted, makes it unwise to rely solely on bitcoin as an investment. Michl shared a personal anecdote about his first bitcoin purchase, which was used to buy a coffee that would now be worth approximately $350, highlighting the asset's unpredictable nature.
The Czech National Bank's $1 million test portfolio, which includes bitcoin, a USD stablecoin, and a tokenized deposit, was established to gain practical experience with blockchain-based assets. A study by the bank found that bitcoin's low long-term correlation with traditional assets could make it a valuable addition to a portfolio, potentially increasing returns without elevating risk. Despite this, the bank's Board decided against investing its foreign exchange reserves in bitcoin due to its risky nature, as outlined in a February 2026 report.