Once considered a wild gamble, Bitcoin is recognized by one of Europe’s largest banks. In a recent report, Deutsche Bank said it believes Bitcoin can join gold as a strategic reserve asset on the central bank’s balance sheet by 2030.
German banks compared Bitcoin’s current path to a journey to accept gold in the 20th century. “History appears to be repeating itself.” A researcher at Deutsche Bank wrote. “Like Bitcoin, Gold was once the subject of speculation of skepticism, doubt and demand.”
An important argument from the bank is that Bitcoin’s infamous volatility (long considered a barrier to enrollment) is declining. In August, Bitcoin’s 30-day volatility fell to a historic low, even if it hit its all-time high.
“This combination suggests that Crypto’s integration into the portfolio is mature and that we may be witnessing the onset of a gradual separation between spot prices and volatility in Bitcoin.” A Deutsche Bank analyst said.
The bank noted that in addition to lower volatility in key markets such as the US, UK and EU, Bitcoin can help reduce speculative reputation.
Marion Laboure, a research analyst at Deutsche Bank, even said that in the coming years we can see Bitcoin become “digital gold.”
Deutsche Bank’s report consistently says that Bitcoin will not abdicate the US dollar as the global reserve currency. The dollar is the largest portion of central bank reserves, falling from 60% in 2000 to 43% in 2025.
Instead, banks view Bitcoin and gold as complementary assets. “By 2030, there is room for both gold and Bitcoin to coexist on central bank balance sheets.” Analysts Marion Roboure and Camila Siersson wrote.
Gold has increased 40% this year, at $3,763 per ounce, attracting stable demand from the central bank. A survey by the World Gold Council, cited by Deutsche Bank, found that over 40% of central banks are planning to increase their gold reserves over the next year.
However, institutional adoption of Bitcoin is approaching reserve assets, from ETFs to corporate finance ministry. After Michael Saylor’s strategy began trending in 2020, over 180 companies have already added rare digital assets to their balance sheets.
Related: The institution currently holds almost 18% of total Bitcoin supply
For Bitcoin to reach Central Banks’ balance sheet, Deutsche Bank says it must meet certain conditions including a clear regulatory framework, deep liquidity, secure custody and volatility.
The bank pointed to progress. The US and the UK have agreed to form a joint digital asset task force, but regulators in Europe and Asia have implemented licensing regimes and prudential standards for digital asset companies.
Rules are becoming more transparent in China and other Asian financial hubs.
With stronger rules, institutional infrastructure and wider adoption, Bitcoin could become what Deutsche Bank called “21st Century Gold.”
Like gold, Bitcoin’s appeal as a reserve asset stems from its shortage and its potential as a hedge against inflation and geopolitical shocks. Analysts noted that central banks, particularly in emerging markets facing inflationary pressures, may find Bitcoin particularly attractive.