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. However, he cautioned that its volatility poses a significant risk. In a speech at the Bitcoin 2026 conference, Michl noted that bitcoin's price could either surge or plummet to zero. He emphasized the importance of diversification, stating that all assets carry the risk of losing value.
Michl shared his personal experience with bitcoin, recalling that a coffee he bought using the cryptocurrency would now cost approximately $350. The Czech National Bank had created a $1 million test portfolio, including bitcoin, to gain hands-on experience with blockchain-based assets. While the study found that bitcoin could potentially drive higher returns, the bank's board decided against investing its foreign exchange reserves in the cryptocurrency due to its high risk.