The Czech Republic’s central bank governor, Aleš Michl, used the Bitcoin 2026 conference in Las Vegas to argue for including Bitcoin in central bank reserves, saying it could enhance overall portfolio returns while warning about its extreme volatility and risks.
“Its volatility is much higher than other assets,” Michl said, noting the price can swing dramatically. “One day its price may be much higher or it could go to zero. Yes, zero.” He emphasized that the risk of total loss exists across asset classes—stocks can go to zero and bonds can fail—so diversification remains essential rather than concentrating on a single asset.
Michl recalled his first Bitcoin purchase: a coffee that, with today’s prices, equates to roughly $350, making it his most expensive coffee ever.
Michl first proposed adding Bitcoin as a reserve diversification tool in January 2025, arguing that payments and investment methods are evolving and central banks should prepare for structural changes. He later suggested allocating up to 5% of the central bank’s reserves to Bitcoin and secured board approval for deeper analysis.
By November 2025, the Czech National Bank executed a test digital asset purchase that included Bitcoin, marking a practical step toward assessing crypto exposure in its reserve strategy.
At Bitcoin 2026, Michl presented data from the Czech National Bank—managing about $180 billion in reserves—saying that a 1% allocation to Bitcoin could raise expected returns while keeping overall portfolio risk broadly stable, owing to Bitcoin’s low correlation with traditional reserve assets. “This is the future,” he declared.
Michl’s stance joins a small but growing set of national approaches to Bitcoin: countries such as El Salvador, Bhutan, and Kazakhstan have integrated Bitcoin into national strategies in various ways. In the United States, an executive order was signed to create a strategic Bitcoin reserve funded by seized assets rather than direct purchases.