Central Banks May Hold More Bitcoin and Gold Than Dollars by 2030
Central banks worldwide could hold more Bitcoin and gold than U.S. dollars by 2030. Deutsche Bank’s latest research highlights a possible shift in sovereign reserve strategies.
The report, titled “Gold’s reign, Bitcoin’s rise: The future of central bank reserves”, compares Bitcoin’s potential role today to gold’s role in the 20th century.
Bitcoin as a Modern Financial Pillar
Deutsche Bank economists Marion Laboure and Camilla Siazon say Bitcoin could become a key pillar of financial security. They note Bitcoin is not backed by physical assets, similar to gold. Yet, Bitcoin’s volatility has dropped to historic lows, making it more attractive to long-term investors.
The report identifies several factors driving this change:
- Growing institutional demand for Bitcoin despite macroeconomic risks and a weaker U.S. dollar.
- Luxembourg became the first Eurozone country to invest in Bitcoin through its sovereign wealth fund.
- Investors seek non-fiat hedges amid geopolitical tensions, rising inflation, and monetary policy uncertainty.
- Central banks may diversify reserves by adding digital assets, especially during stress on traditional currencies.
While gold has long been favored for stability and inflation protection, cryptocurrencies face challenges like volatility, regulatory risks, and custody concerns. Deutsche Bank argues these issues can be managed by central banks with sufficient resources and time.
If central banks adopt Bitcoin, reserve portfolios could become more diversified. This may also accelerate regulatory frameworks and infrastructure development for holding cryptocurrencies.
Market Update: Bitcoin and Gold Prices
Bitcoin and gold remain attractive safe-haven assets for central banks amid economic uncertainty. At the time of writing, Bitcoin (BTC) trades at $121,679, down 0.31% in 24 hours, according to CoinMarketCap.
Gold is priced at $3,991.10 per ounce, per APMEX. These values underline why central banks may increasingly consider both assets to hedge against currency risks and market volatility.
