Bitcoin's Potential Role in Central Bank Reserves by 2030

According to BlockBeats, Deutsche Bank has projected that by 2030, Bitcoin could appear on central banks' balance sheets alongside gold as a complementary hedge asset. However, neither is likely to replace the U.S. dollar as the primary reserve currency. In a report released on Monday, Deutsche Bank suggested that Bitcoin is expected to become a recognized reserve asset within the next decade, coexisting with gold, which is likely to maintain its lead in official holdings. The bank highlighted the scarcity of both Bitcoin and gold, along with their low correlation with other assets, as reasons for their continued coexistence as complementary assets to hedge against inflation and geopolitical risks. It emphasized that Bitcoin and gold are unlikely to replace the dollar, as governments will act to protect monetary sovereignty. Deutsche Bank noted that Bitcoin's adoption will follow a path similar to gold, transitioning from skepticism to widespread acceptance. Regulatory developments, macroeconomic trends, and time will pave the way for this transition. The report indicated that as investors continue to seek alternatives to traditional assets, Bitcoin could evolve from a speculative investment to a legitimate pillar of the global financial system.