The Czech Republic’s central financial institution governor, Alex Michl, mentioned that including bitcoin to the monetary establishment’s reserves may enhance efficiency, however warned its volatility is way greater than different belongings and subsequently represents a threat.
“Its volatility is way greater than different belongings,” Michl mentioned in a speech on the Bitcoin 2026 convention in Las Vegas on Tuesday. “Sooner or later its worth could also be a lot greater or it may go to zero. Sure, zero”.
Michl acknowledged that each one belongings face the danger of shedding their complete worth, which is why banks have portfolios. “A inventory can go to zero. Even a bond can fail. So for me that’s the reason it isn’t clever to guess simply on one asset.”
“The primary time I used bitcoin, I purchased a espresso. At present. that espresso involves about $350, so it was the most costly espresso of my life.”
Nonetheless, he insisted that whereas bitcoin by means of time reveals “very excessive returns, however truthfully it seems too dangerous.”
The Czech Nationwide Financial institution grew to become the primary central financial institution worldwide to buy bitcoin in November because it introduced the creation of a $1 million take a look at portfolio that features BTC, a USD stablecoin, and a tokenized deposit. Accepted by the CNB’s financial institution a month prior, the pilot was geared toward buying hands-on expertise with blockchain-based belongings, which it mentioned may redefine how the nation’s funds and monetary techniques function sooner or later.
A CNB research, he mentioned, discovered that as a result of bitcoin has low long-term correlation with many conventional belongings, it doesn’t transfer in the identical path and that’s necessary.
“Whenever you add an asset like this, the entire portfolio can work higher. Return can go up and threat stays about the identical,” he defined, including that over the long run, “bitcoin can present returns that aren’t carefully linked to different belongings. In some methods it’s comparable for me to enterprise capital however it’s rather more liquid.”
Nonetheless, regardless of discovering that bitcoin has the potential to drive greater returns with smaller allocations much more so than gold, “the CNB’s Financial institution Board determined to not make investments its FX reserves in bitcoin right now,” the research dated February 2026 states.
