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Czech Central Bank Governor proposed allocating 1% of state reserves to Bitcoin., 2026/04/29 11:00:54
The Governor of the Czech National Bank (CNB), Aleš Michl, stated at the Bitcoin 2026 conference in Las Vegas the importance of incorporating bitcoin into the central bank’s reserves to manage inflation.
Michl mentioned that when he assumed the role of governor in mid-2022, the inflation rate in the country was approximately 20%. The central bank committed to reducing this figure to 2% within two years and has made progress toward this goal through discipline and effective allocation of reserves. He pointed out that money had remained inexpensive for too long, leading to currency depreciation, which is why he believes it is necessary to allocate a small portion of the state reserves to bitcoin to enhance expected returns without increasing risks.
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The CNB governor recalled his first experience using bitcoin to buy coffee in Prague. He acknowledged that the significant volatility of the cryptocurrency gives the impression of it being a risky asset, as the bitcoin price can fluctuate at any moment. However, he noted that other assets also experience volatility, and thus the central bank must carefully assess the behavior of each asset within its reserves.
According to Michl, the regulator’s role is to think ahead and structure reserves with long-term stability in mind, gradually reducing the share of low-yield instruments while increasing investments in higher-yield assets. He believes that in the long run, bitcoin could generate returns, making it reasonable to allocate 1% of the state reserves to it.
“Incorporating bitcoin into the reserves would enhance expected returns at a comparable level of risk — this is the essence of diversification,” Michl stated.
Previously, the head of the Czech central bank urged financial institutions not to fear bitcoin but rather to explore the opportunities presented by cryptocurrency and the blockchain technology underlying it. Michl is confident that the first cryptocurrency should strengthen the country’s financial sector.
