According to the Czech Republic's central bank governor, Alex Michl, incorporating bitcoin into the institution's reserves could potentially boost performance due to its low correlation with traditional assets. However, Michl emphasized the cryptocurrency's volatility, citing its potential to significantly fluctuate in value, even to the point of becoming worthless. During a speech at the Bitcoin 2026 conference, Michl noted that all assets carry some level of risk, but diversification is key to mitigating this risk. He shared a personal anecdote about his first experience with bitcoin, purchasing a coffee that would now be valued at approximately $350, highlighting the cryptocurrency's unpredictable nature.
The Czech National Bank had established a $1 million test portfolio comprising bitcoin, a USD stablecoin, and a tokenized deposit to explore the potential applications of blockchain-based assets in the country's financial systems. While the study found that bitcoin can provide high returns with minimal correlation to other assets, the bank's board ultimately decided against investing in it due to its high risk profile.