Bitcoin Conference 2026 » Czech Central Bank Governor: Whether Bitcoin is suitable for reserves, revealed in two years

Czech Central Bank Governor Michl announced at the 2026 Bitcoin Conference that a two-year Bitcoin reserve testing program will be launched. Data shows that allocating 1% to Bitcoin can enhance returns without increasing overall risk.

Czech Central Bank shifts to a “conservative yet innovative” reserve strategy

At the Bitcoin 2026 conference held in Las Vegas, Aleš Michl, President of the Czech National Bank (CNB), personally appeared to give a speech, becoming one of the few current central bank leaders to openly support Bitcoin.

When Michl took over as governor in mid-2022, the Czech Republic was facing nearly 20% inflation. He chose to respond with strict monetary discipline and tightening policies, rather than relying on financial magic, ultimately lowering inflation to the 2% target within two years.

He emphasized that the global system has long been in a low-cost money environment, and excessive borrowing has weakened the currency’s value. The Czech National Bank therefore shifted to a hard monetary policy, focusing on strengthening the koruna (Czech crown) exchange rate and encouraging savings. Based on ensuring monetary stability, Michl began re-evaluating the composition of reserve assets.

Currently managing about $180 billion in foreign exchange reserves, which amount to 44% of the country’s GDP, the Czech National Bank’s scale is extremely high among global economies. Facing such a large asset base, Michl believes traditional investment portfolios must evolve to respond to future economic changes. Over the past four years, the Czech central bank has gradually adjusted its allocations, increasing stocks from 15% to 26%, and gold reserves from zero to 6%. This “conservative but innovative” dual-track approach aims to improve expected returns while balancing the risks associated with traditional assets.

Image source: Bitcoin 2026 The Czech National Bank currently manages about $180 billion in foreign exchange reserves, amounting to 44% of the country’s GDP

Michl pointed out that the central bank must have forward-looking thinking to build an investment portfolio that provides long-term protection for the country, which is also the main driver behind exploring non-traditional assets.

Data-driven portfolio optimization: How does 1% Bitcoin allocation balance returns and risks?

Michl revealed the latest research data during the conference, confirming that Bitcoin has a low long-term correlation with bonds, stocks, and gold—traditional assets. This low correlation is at the core of the central bank’s diversification strategy.

Image source: Bitcoin 2026 Michl disclosed the latest research data, confirming that Bitcoin shows low long-term correlation with bonds, stocks, and gold

The research report indicates that adding 1% Bitcoin to reserves can significantly improve the expected return measured in koruna, while keeping the overall portfolio risk nearly unchanged. Michl explained that the volatility of a single asset does not represent the overall risk; the key is how that asset behaves within the investment portfolio. He humorously recalled that ten years ago in Prague, he bought coffee with Bitcoin, which, at today’s exchange rate, would be worth about $350—a coffee that became the most expensive in his life.

This data-driven decision-making process breaks the previous view of Bitcoin as purely speculative held by many central banks. Michl believes that although Bitcoin’s price may fluctuate wildly in the short term, or even go to zero in extreme cases, such risks are also present in stocks or defaulted bonds. The central bank’s task is not to bet on a single asset but to seek a diversified portfolio with potential.

He compares Bitcoin to a highly liquid risk investment (Venture Capital), which, although inherently a forward-looking asset, has a unique position in modern reserves due to its 24/7 trading and lack of counterparty risk. The Czech central bank has now initiated an independent Bitcoin test portfolio, planned to last two years, aiming to gather more practical data to determine future official allocations.

Challenging the European Central Bank’s traditional view, Prague’s crypto community leads a systemic change

The Czech central bank’s open attitude contrasts with the European Central Bank’s (ECB) conservative stance. ECB President Christine Lagarde previously questioned Bitcoin’s liquidity and security, refusing to consider it within the ECB’s scope.

However, Štěpán Uherík, CFO of hardware wallet manufacturer Trezor, pointed out that the Czech central bank’s research data directly refutes these doubts. Bitcoin’s 24/7 trading capability and lack of counterparty risk are precisely the hedging features sought in reserve assets.

Uherík believes that when a successful professional financial official who brought inflation down from 20% to 2% presents data support, Bitcoin has shifted from fringe discussion to data-driven rigorous financial decision-making.

Prague, as the birthplace of the world’s first Bitcoin mining pool and hardware wallet, has a deep foundation in cryptography. Uherík emphasized that the Czech financial system is catching up with private builders. Since 2011, Prague has had a mature Bitcoin community, and now the participation of national-level financial institutions signifies that digital assets have entered mainstream discussion. Regarding custody concerns most holders care about, Uherík reiterated the importance of self-custody, considering it the core solution to transaction risks. The path from grassroots promotion to official recognition demonstrates a vitality in digital asset application that sets Czech apart from other European countries.

A two-year Bitcoin investment experiment

The Czech National Bank has officially launched an independent Bitcoin test portfolio, moving this debate from theory to practical operation. The plan is expected to run for two years, with detailed results announced afterward to serve as a basis for future decisions on whether to include Bitcoin in foreign exchange reserves.

Michl emphasized that this initiative is a data-based experiment, not a political statement. Bitcoin has shown unique value in long-term returns, and for managing large reserves, exploring emerging assets is a necessary step to address future risks. The Czech central bank will maintain conservative monetary discipline while pursuing innovation in investment management, rigorously testing the suitability of non-traditional assets.

As Bitcoin 2026 concludes, global financial institutions are watching Czech’s experiment. In his closing speech, Michl called on financial institutions to maintain monetary policy stability while being brave to innovate in their working methods. This two-year test is not only an internal matter for the Czech central bank but also provides a practical reference model for other regulators worldwide who are observing.

Bitcoin’s entry into the mainstream financial system has evolved from early geek experiments to a candidate asset for central bank reserves. With the 2027 conference expected to be held in Nashville, the Czech central bank’s performance will become the next focal point for global financial markets.