Czech Bank Governor Advocates 1% Bitcoin Reserves

Czech National Bank Governor Aleš Michl advocated for a 1 percent allocation of Bitcoin in the bank's reserves during a keynote speech at the Bitcoin 2026 conference in Las Vegas this week, arguing that it could enhance portfolio returns without raising overall risk.

Michl presented findings from the bank's internal analysis, which showed that Bitcoin's low long-term correlation with traditional assets like bonds and equities makes it a viable diversifier. "This is our model portfolio with 1 percent in Bitcoin," he said. "Expected return goes up and overall risk stays about the same in our Czech currency." He emphasized diversification as the core rationale, noting that all assets carry risks, from stock market crashes to bond defaults.

The Czech National Bank already operates a separate 1 million experimental digital asset portfolio that includes Bitcoin, launched after Michl first proposed up to a 5 percent allocation in January 2025. This test portfolio, described by Michl as "a test, not a revolution," will run for two years, with results to be published around 2027 to inform any formal decision on core reserves integration. The bank manages approximately 180 billion in...