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Czech Central Bank Concludes Bitcoin Reserve Test, Deems Asset 'Too Risky' for Reserves
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Czech Central Bank Concludes Bitcoin Reserve Test, Deems Asset 'Too Risky' for Reserves

May 1, 2026

The Czech National Bank concluded its pioneering test of bitcoin for sovereign reserves after purchasing $1 million in BTC, ultimately deeming the cryptocurrency too risky despite finding it more efficient than traditional assets. Governor Ales Michl had proposed allocating up to 5% of the bank's $180 billion reserves to bitcoin and found that a 1% allocation would increase returns while maintaining overall risk levels due to bitcoin's low correlation with other assets. The bank became the first central bank globally to purchase bitcoin in November 2025, moving further than peers despite opposition from institutions like the European Central Bank, which argues bitcoin lacks sufficient liquidity and security. The test attracted significant attention, with Michl delivering a keynote on the topic at Bitcoin 2026 in Las Vegas, though the bank's final determination against adoption may influence other central banks considering similar diversification strategies.

Czech National Bank's Bitcoin Reserve Strategy and Test Results

  • ▪The Czech National Bank made its first digital asset purchase in November 2025 through a test portfolio that included bitcoin
  • ▪The Czech National Bank manages approximately $180 billion in reserves
  • ▪The Czech National Bank found bitcoin has low correlation with other reserve assets
  • ▪Czech National Bank Governor Ales Michl first proposed bitcoin as a reserve diversification tool in early January 2025
  • ▪Czech National Bank Governor Ales Michl proposed allocating as much as 5% of reserves to bitcoin
  • ▪Czech National Bank Governor Ales Michl won board approval for deeper analysis of bitcoin as a reserve asset
  • ▪The Czech National Bank found that adding 1% bitcoin to its portfolio would increase expected returns while keeping overall risk roughly unchanged

Governor Michl's Case for Bitcoin as a Portfolio Diversifier

  • ▪Czech National Bank Governor Ales Michl delivered a keynote titled 'Diversifying Central Bank Reserves With Bitcoin' at the Bitcoin 2026 conference in Las Vegas
  • ▪Czech National Bank Governor Ales Michl stated that central banks need to think beyond traditional assets when building portfolios for the future
  • ▪Czech National Bank Governor Ales Michl acknowledged bitcoin's volatility but argued that concentration risk exists in traditional assets too
  • ▪Trezor CFO Stepan Uherik stated that the European Central Bank has argued bitcoin is not liquid, not secure, and not safe enough for reserves

Broader Implications for Central Bank Crypto Adoption

  • ▪Standard Chartered opined earlier in 2025 that more sovereign wealth funds and central banks could begin treating bitcoin as a portfolio diversifier
  • ▪The Czech National Bank is the first central bank to buy bitcoin
  • ▪The Czech National Bank has moved further than its central bank peers in bitcoin adoption

2 sources

The Block
‘This is the future’: Czech central bank governor makes case for bitcoin in sovereign reserves
View source article
Coindesk
First central bank to test bitcoin says asset is ‘too risky’ for reserves
View source article

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BitcoinCzech Republic

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