Price of bitcoin could go higher or ‘can go to zero,’ says Czech central bank governor
The Czech Central Bank purchased $1 million in bitcoin in October to run tests and conduct a study and found it is more efficient than stocks and gold but much too risky.
What to know:
- Czech central bank governor Aleš Michl said adding bitcoin to reserves could improve portfolio performance but stressed its extreme volatility and risk, including the possibility it could go to zero.
- A Czech National Bank study found bitcoin’s low long-term correlation with traditional assets can enhance returns without significantly increasing overall risk, likening it to a more liquid form of venture capital.
- Despite these potential benefits and a $1 million test portfolio that includes bitcoin, the CNB’s Bank Board decided in February 2026 not to invest the country’s foreign-exchange reserves in bitcoin.
Michl acknowledged that all assets face the risk of losing their entire value, which is why banks have portfolios. “A stock can go to zero. Even a bond can fail. So for me that is why it is not wise to bet just on one asset.”
“The first time I used bitcoin, I bought a coffee. Today. that coffee comes to about $350, so it was the most expensive coffee of my life.”
However, he insisted that while bitcoin through time shows “very high returns, but honestly it looks too risky.”
The Czech National Bank became the first central bank worldwide to purchase bitcoin in November as it announced the creation of a $1 million test portfolio that includes BTC, a USD stablecoin, and a tokenized deposit. Approved by the CNB’s bank a month prior, the pilot was aimed at acquiring hands-on experience with blockchain-based assets, which it said could redefine how the country’s payments and financial systems operate in the future.
