Bitcoin may appear alongside gold on central bank balance sheets: Deutsche Bank

Key Takeaways

• Deutsche Bank reports central banks are likely to purchase Bitcoin this decade.
• Institutions are accelerating adoption of Bitcoin, citing its "digital gold" status.

Deutsche Bank, a major German multinational investment bank, reports that central banks will purchase Bitcoin during this decade as institutional adoption of the digital asset accelerates.

The bank’s analysis suggests sovereign institutions may diversify their reserves beyond traditional holdings like the US dollar, which currently comprises 57% of global reserves. Bitcoin’s evolving role as “digital gold” positions it as a potential store of value for national treasuries.

Institutional interest in Bitcoin has already surged across the financial sector. Bank of Montreal and Barclays significantly increased their Bitcoin ETF holdings in 2024, signaling broader integration among major financial institutions.

The US government is exploring establishing a strategic Bitcoin reserve under President Donald Trump, with proposals to acquire up to 200,000 BTC annually. Such sovereign-level adoption could accelerate similar moves by other nations.

Bitcoin’s market infrastructure has matured substantially, with exchange-traded funds attracting more than $110 billion in assets under management from firms like BlackRock. The cryptocurrency’s declining volatility mirrors gold’s historical evolution from a speculative asset to a standard reserve holding.

Created in 2009, Bitcoin’s limited supply and decentralized nature have attracted institutions seeking alternatives to traditional monetary systems as central banks worldwide evaluate portfolio diversification strategies.