Bitcoin News Today: De-Dollarization Drives Central Banks to Embrace Bitcoin and Gold Reserves

Deutsche Bank has forecasted that Bitcoin could join gold in central bank reserves by 2030, driven by its diminishing volatility, fixed supply, and growing institutional adoption. The bank's analysts, Marion Laboure and Camilla Siazon, argue that Bitcoin's behavior increasingly mirrors gold's characteristics as a safe-haven asset, despite its lack of intrinsic backing. Both assets have seen record price surges in 2025, with gold nearing $4,000 per ounce and Bitcoin surpassing $125,000. The analysts note that central banks are diversifying away from U.S. dollar reserves, a trend that has accelerated as the dollar's share in global reserves fell from 60% in 2000 to 41% in 2025.

The bank's research highlights Bitcoin's structural advantages, including its fixed supply of 21 million coins, low transaction costs, and extreme portability compared to gold. For instance, storing 0.001 BTC or 10 million BTC incurs nearly zero cost, a stark contrast to the $5.1 million annual storage fees for 400,000 gold bars at the Bank of England. These attributes make Bitcoin a viable complement to gold in central bank portfolios, particularly in times of geopolitical conflict or economic instability. However, the bank acknowledges Bitcoin's volatility as a hurdle, though it has declined to historic lows in recent months.

Institutional adoption is further bolstering Bitcoin's case. Over $51 billion in net inflows into U.S. spot Bitcoin ETFs in 2025 have deepened liquidity, while the U.S. government's establishment of a Strategic Bitcoin Reserve-funded by seized assets-signals growing legitimacy. Similarly, central banks have added 15 tonnes of gold to their reserves in August 2025, with countries like Poland, China, and Kazakhstan leading purchases. The World Gold Council notes that central banks now hold more gold than U.S. Treasuries for the first time since 1996.

Deutsche Bank's analysis also underscores the de-dollarization trend, where nations seek to reduce reliance on the U.S. dollar amid geopolitical tensions and inflation risks. Gold and Bitcoin are seen as complementary diversifiers, with both assets exhibiting low correlation to traditional markets. The S&P 500 has hit record highs in 2025 despite the surge in "safe haven" demand, illustrating a paradox in current market dynamics.

Critics, including JPMorgan analysts, caution that stablecoins could reinvigorate demand for the U.S. dollar, potentially countering the shift toward gold and Bitcoin. However, Deutsche Bank maintains that neither asset will replace the dollar but could serve as strategic reserves alongside it. The bank's projections align with Goldman Sachs' raised gold price target to $4,900, citing persistent demand from emerging market central banks.

While challenges remain-such as regulatory scrutiny and Bitcoin's technical vulnerabilities-the convergence of ETF inflows, sovereign reserve initiatives, and central bank diversification strategies suggests a structural shift in how institutions view digital assets. As Laboure and Siazon conclude, Bitcoin's journey to central bank reserves may parallel gold's 20th-century ascent, reflecting a modern redefinition of financial security.

Source: [1] https://fortune.com/2025/10/07/central-banks-bitcoin-reserves-backed-by-nothing-deutsche-bank/

[2] https://dailyhodl.com/2025/10/08/deutsche-bank-predicts-bitcoin-will-join-gold-in-central-bank-reserves-heres-when/

[3] https://cryptonews.com.au/news/deutsche-bank-predicts-central-banks-will-hold-bitcoin-and-gold-as-core-reserves-by-2030-131210/

[4] https://investinghaven.com/crypto-blockchain/coins/bitcoin/how-bitcoin-etfs-and-central-bank-crypto-reserves-are-altering-liquidity-dynamics/

[5] https://www.forbes.com/sites/roystonwild/2025/10/03/central-banks-add-15-tonnes-of-gold-in-august-says-world-gold-council/

[6] https://www.ebc.com/forex/why-central-banks-are-buying-gold-the-shift-from-treasuries

[7] https://www.bloomberg.com/news/articles/2025-10-09/central-banks-seen-holding-bitcoin-gold-as-key-reserves-by-2030-deutsche-bank

[8] https://cryptonews.com/news/bitcoin-becomes-a-cornerstone-of-financial-security-to-join-central-bank-reserves-deutsche-bank/