The governor of the Czech Republic's central bank, Alex Michl, has expressed concerns about the volatility of bitcoin, stating that its price fluctuations are higher than those of other assets. Although he acknowledged that bitcoin has the potential to improve portfolio performance, he warned that its risk is too great for the central bank's reserves. The Czech National Bank had purchased $1 million in bitcoin as part of a test portfolio to gain experience with blockchain-based assets. A study by the bank found that bitcoin's low correlation with traditional assets could make it a valuable addition to a portfolio, but its high volatility ultimately led the bank to decide against investing its foreign exchange reserves in the asset.