According to the Czech Republic's central bank governor, Alex Michl, incorporating bitcoin into the bank's reserves could potentially enhance performance, but its volatility poses a significant risk. In a speech at the Bitcoin 2026 conference, Michl noted that bitcoin's price fluctuations are substantially higher than those of other assets, making it a risky investment.
While acknowledging that all assets carry the risk of losing value, Michl emphasized the importance of diversification and cautioned against relying on a single asset. The Czech National Bank had previously purchased $1 million in bitcoin as part of a test portfolio, which also included a USD stablecoin and a tokenized deposit, to gain hands-on experience with blockchain-based assets. A study by the bank found that bitcoin has low long-term correlation with traditional assets, making it a potentially valuable addition to a portfolio.
However, due to its high volatility, the bank's Board decided not to invest its foreign exchange reserves in bitcoin at this time.