According to the Czech Republic's central bank governor, Alex Michl, incorporating bitcoin into the bank's reserves could enhance performance due to its low correlation with traditional assets, which could lead to higher returns without significantly increasing risk. However, Michl emphasized the asset's high volatility, stating that its price could skyrocket or plummet to zero.
This unpredictability makes it unwise for the bank to rely solely on bitcoin. Michl shared his personal experience with bitcoin, recounting how he once bought a coffee with it, which would now cost approximately $350, making it the most expensive coffee he has ever purchased.
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 raising the overall risk. Despite this, the bank's Board decided against investing its foreign exchange reserves in bitcoin due to its high risk profile, as outlined in a study from February 2026.