Czech central bank is testing a 1% Bitcoin portfolio allocation

Allocating 1% of a central bank's portfolio to Bitcoin can increase returns while keeping risk constant, said Aleš Michl, governor of the Czech National Bank, at the Bitcoin 2026 Conference. He explained that BTC has value for diversification due to its low long-term correlation with traditional assets. Michl noted that the central bank has already diversified its holdings over the past four years, increasing its stock allocation from 15% to 26% and its gold holdings from zero to 6%. The BTC allocation is part of this strategy. He added that the bank is currently operating a test portfolio that includes Bitcoin and plans to release the results in two years, at which point it will decide on formally including the asset. Michl also stated that adding Bitcoin to reserve portfolios is the future for central banks. The Czech Republic has maintained a hawkish monetary policy, successfully reducing its inflation rate from 20% in 2022 to the 2% range within two years.