Czech Central Bank Governor Alex Michel said adding Bitcoin to financial institutions’ reserves could improve performance, but warned that Bitcoin’s volatility is much higher than other assets and carries risks.
“Its volatility is much higher than other assets,” Mickle said Tuesday in a speech at the Bitcoin 2026 conference in Las Vegas. “One day that price may be higher, or it may be zero. Yes, it is zero.”
Mickle acknowledges that all assets face the risk of losing their entire value, which is why banks have portfolios. “Stocks can go to zero. Even bonds can fail. That’s why, for me, it’s not wise to bet on just one asset.”
“The first time I used Bitcoin, I bought a coffee. Today. That coffee cost about $350, so it was the most expensive coffee I’ve ever had in my life.”
However, he argued that Bitcoin “offers very high returns over time, but it honestly looks like too much risk.”
In November, the Czech National Bank announced the creation of a $1 million test portfolio including BTC, USD stablecoins, and tokenized deposits, becoming the world’s first central bank to purchase Bitcoin. The pilot, approved a month ago by CNB banks, aims to gain practical experience with blockchain-based assets, which it said could redefine how the country’s payments and financial system operates in the future.
He said CNB’s research found that Bitcoin has a low long-term correlation with many traditional assets, so they don’t move in the same direction, which is important.
“Adding assets like this can make your overall portfolio perform better. Returns can increase, but the risk remains about the same,” he explains, adding, “Bitcoin can provide returns that are not closely related to other assets over the long term. In some ways, it’s similar to venture capital to me, but Bitcoin is more liquid.”
However, despite finding that Bitcoin has the potential to deliver higher returns with smaller allocations than gold, “CNB’s banking board has decided not to invest foreign exchange reserves in Bitcoin at this time,” the study, dated February 2026, said.
