While gold keeps drawing strong official demand, the report says central banks may begin treating Bitcoin as a complementary store of value rather than a replacement for existing reserve assets.
Deutsche Bank points out that gold buying by official institutions remains robust. In fact, the bank has moved its own gold forecasts higher as bullion rallies, noting demand from some countries is running well above past averages.
Based on reports, one part of the argument rests on supply dynamics. Bitcoin’s fixed maximum supply — 21 million coins — and growing institutional accumulation have tightened available market supply in recent periods.
At the same time, the study notes Bitcoin’s 30-day volatility recently hit historic lows, a fact that analysts say reduces one major hurdle to reserve adoption.
Still, big price swings remain possible and would be closely watched by any central bank considering a holdings shift.
Reports say the US dollar would remain dominant as the world’s main reserve currency, but some diversification into non-dollar assets could push officials to explore alternatives including Bitcoin.
Legal and technical issues are still on the table. Custody solutions must meet the security standards central banks require. Rules in many jurisdictions would need updating to allow sovereign institutions to hold crypto.
Featured image from Meta, chart from TradingView
