Czech National Bank: 1% Bitcoin Could Boost Reserve Returns

At the Bitcoin 2026 conference in Las Vegas, Czech National Bank Governor Aleš Michl presented internal research showing that a 1% allocation to Bitcoin could raise expected returns for the bank’s reserves without materially increasing overall portfolio risk. He attributed the result to Bitcoin’s low correlation with the bank’s other reserve assets.

The CNB holds about $180 billion in foreign-exchange reserves, roughly 44% of national GDP. Michl said the bank tested small Bitcoin weightings in long-term portfolios and compared results with allocations to gold and equities. The analysis indicated a 1% Bitcoin position could improve expected returns while requiring a smaller capital allocation than equities.

The study used historical market data rather than forward-looking projections, a limitation the bank highlighted. The CNB presented results for long-term portfolio mixes and stressed that past performance does not guarantee future outcomes.

Officials also noted Bitcoin’s price volatility and changes in its correlation with other assets over time. For that reason, the CNB described Bitcoin as a candidate for consideration in reserve theory rather than an established, active part of official reserves. The bank has previously maintained a separate test portfolio that included blockchain assets but remained outside official reserves.

The governor’s remarks contrast with the European Central Bank’s public position that reserve assets should be liquid, safe and secure and therefore not include Bitcoin. Michl presented CNB data as an alternative perspective based on observed market behavior.

Štěpán Uherík questioned whether central banks can continue to exclude Bitcoin’s potential portfolio role, citing active trading markets and the absence of counterparty risk as factors that could support holding the asset.

The CNB also reported ongoing gold accumulation, with holdings at 67.2 metric tons against a target of 100 metric tons. Its review found that increasing gold exposure did not materially change the portfolio’s overall risk-return profile.

The bank framed Bitcoin within a regulated portfolio structure and emphasized careful study and internal review before any official reserve changes.