Deutsche Bank has made an ambitious assessment of the role of digital assets in the global financial system, suggesting that Bitcoin could enter the ranks of central bank reserve assets in the coming years. According to the bank’s analysis, there are increasing signals that Bitcoin could be considered alongside traditional reserve instruments such as gold.
This perspective was reignited by a plan brought up by U.S. President Donald Trump in early 2024 to create a “strategic Bitcoin reserve.” Following this statement, interest in the institutional and state-level adoption of Bitcoin has gained new momentum.
Trump’s Plan Initiates a New Debate
Marion Laboure from the Deutsche Bank Research Institute told CNBC that the Trump administration’s comments could open the door to a new era in central bank strategies. Laboure stated, “The decision to create a strategic Bitcoin reserve brings the potential for central banks to embrace Bitcoin as a reserve asset back into the spotlight.”
Laboure emphasized that the probability of both gold and Bitcoin being featured on central banks’ balance sheets together by 2030 is strengthening. This indicates long-term trends regarding how digital assets will be positioned at the macroeconomic level.
Low Correlation and Store of Value Function Stand Out
The Deutsche Bank report also highlighted Bitcoin’s low correlation with traditional financial assets as a noteworthy feature. This characteristic, the report suggests, makes Bitcoin a potential store of value for long-term investors.
The analysis shared that Bitcoin’s potential to move in different directions from conventional financial markets, especially during times of crisis, could support its use as a reserve asset. In this context, the bank’s analysis suggests that Bitcoin’s institutional role within the financial system may expand in the coming years.
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