The Czech Republic’s top central banker, Aleš Michl, used the Bitcoin 2026 conference in Las Vegas to make a case for including Bitcoin in central bank reserves, suggesting that it could improve the overall portfolio performance.
However, he cautioned that its volatility remains significantly higher than that of traditional assets, making it a potentially risky addition despite its appeal.
Bitcoin Improves Reserve Portfolio Despite Being Too Risky
“Its volatility is much higher than other assets,” Czech National Bank Governor Aleš Michl said during his Tuesday speech, adding that the price could swing dramatically in either direction. “One day its price may be much higher or it could go to zero. Yes, zero.”
Michl noted that the risk of total loss applies across all asset classes, which is precisely why institutions diversify through portfolios. “A stock can go to zero. Even a bond can fail,” he said, adding that this is why concentrating on a single asset is not a prudent strategy.
“The first time I used Bitcoin, I bought a coffee,” the central banker recalled. “Today, that coffee comes to about $350, so it was the most expensive coffee of my life.”



 “This Is The Future”
Michl first introduced the idea of adding Bitcoin as a reserve diversification tool in early January 2025. At the time, Aleš Michl said that new methods of payment and investment were emerging rapidly, and emphasized that the central bank wanted to be prepared for those structural changes in the financial system.
He later proposed allocating up to 5% of the central bank’s reserves to the asset, securing board approval to conduct deeper analysis.
By November 2025, he had overseen the Czech National Bank’s first digital asset purchase through a test portfolio that included Bitcoin, marking a notable step toward exploring crypto exposure in central banking strategy.
At Bitcoin 2026, Michl strengthened his case with data, noting that the Czech National Bank—managing roughly $180 billion in reserves—found that allocating just 1% to Bitcoin will boost expected returns while keeping overall portfolio risk broadly stable, thanks to Bitcoin’s low correlation with traditional reserve assets. “This is the future,” Michl declared on stage.
It’s worth noting that other nation states like El Salvador, Bhutan, and Kazakhstan have also integrated Bitcoin into national strategies—ranging from legal tender adoption to sovereign wealth initiatives. In the United States, President Trump signed an executive order to establish a strategic Bitcoin reserve, though it will be funded by seized assets rather than direct purchases.
