Bitcoin's Scarcity and Stability Attract Central Banks as Reserve Diversifier, Deutsche Bank Reports

Deutsche Bank has forecasted that Bitcoin could join gold on central bank balance sheets by 2030, positioning the cryptocurrency as a complementary hedge asset rather than a replacement for the U.S. dollar. The bank’s analysis highlights Bitcoin’s declining volatility and growing institutional adoption as key drivers for its potential inclusion in official reserves. While gold is expected to retain its dominant role, the report suggests that Bitcoin’s scarcity and low correlation with traditional assets could make it an attractive addition to diversify portfolios against inflation and geopolitical risks Deutsche Bank Sees Bitcoin in Central Bank Reserves by 2030^[1].

The bank noted that Bitcoin’s 30-day volatility hit historic lows in August 2025, even as its price surpassed $123,500. This trend, coupled with regulatory advancements in major markets, signals a shift from speculative trading to a more mature asset class. Deutsche Bank emphasized that neither Bitcoin nor gold is likely to displace the dollar as the primary reserve currency, as governments are expected to prioritize monetary sovereignty. However, the dollar’s share of global reserves has already begun to decline, with China’s U.S. Treasury holdings dropping by $57 billion in 2024 Bitcoin Set to Join Gold on Central Bank Balance Sheets as Volatility Eases^[2].

Several nations are already building Bitcoin reserves, aligning with Deutsche Bank’s projections. The United States holds approximately 198,000 Bitcoin, valued at around $20 billion, while El Salvador and Bhutan have integrated Bitcoin into their national strategies. The Czech Republic’s central bank has proposed allocating up to 5% of its €140 billion reserves to Bitcoin. Additionally, U.S. states like New Hampshire and Texas have enacted legislation to establish strategic Bitcoin reserves, further normalizing its role as a reserve asset Deutsche Bank Predicts Bitcoin Will Join Gold in Central Bank Reserves by 2030^[3].

Despite these developments, resistance from traditional financial institutions remains. Federal Reserve Chair Jerome Powell has explicitly ruled out Bitcoin’s inclusion in the Fed’s holdings, citing legal constraints. A February 2025 survey of economists found no support for strategic crypto reserves as a benefit to the U.S. economy. Nevertheless, Deutsche Bank argues that Bitcoin’s trajectory mirrors gold’s historical acceptance, transitioning from skepticism to institutional legitimacy over time. Regulatory clarity and macroeconomic trends are expected to accelerate this process Bitcoin (BTC) to Join Gold on Central Bank Balance Sheets by 2030^[4].

The bank’s report underscores Bitcoin’s potential to coexist with gold in central bank portfolios, leveraging its scarcity and inflation-hedging properties. While the timeline for adoption remains uncertain, the growing acceptance of Bitcoin as a reserve asset reflects broader shifts in global finance. As volatility continues to decline and adoption expands, Bitcoin may evolve from a speculative asset to a cornerstone of the financial system, complementing traditional reserves without challenging the dollar’s dominance Deutsche Bank: Bitcoin to Appear on Central Bank Balance Sheets by 2030^[5].