LATEST: Central Banks Eye Bitcoin for Reserves Asset, Deutsche Bank Reports

Deutsche Bank has forecast that central banks will begin purchasing Bitcoin this decade, as global adoption of the digital asset continues to gain momentum. Once dismissed as speculative, Bitcoin is increasingly being viewed as “digital gold” and a potential store of value for national treasuries. The move would mark a historic shift in reserve strategy away from traditional holdings like the US dollar, which currently accounts for 57% of global reserves.

Institutional interest is already surging. Major financial players such as Bank of Montreal and Barclays boosted their Bitcoin ETF holdings in 2024, while U.S. lawmakers are considering the creation of a strategic Bitcoin reserve. Under President Donald Trump, proposals call for acquiring up to 200,000 BTC annually, a step that could trigger similar adoption by other sovereign states.

Bitcoin’s infrastructure has matured significantly, with exchange-traded funds now managing over $110 billion through firms like BlackRock. Its declining volatility, mirroring gold’s historical path, strengthens its case as a standard reserve asset in the evolving global financial system.

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