Bitcoin Set to Appear on Central Bank Balance Sheets by 2030, Says Deutsche Bank

A new report from Deutsche Bank suggests that Bitcoin (BTC) is on track to become a formal reserve asset for central banks, sitting alongside gold as a long-term store of value and hedge against inflation. Analysts at the bank say Bitcoin’s evolution mirrors gold’s historical path from a speculative commodity to a trusted safeguard during periods of economic and geopolitical uncertainty.

Good to Know

• Deutsche Bank expects Bitcoin to appear on central bank balance sheets by 2030.
• Analysts cite BTC’s fixed 21 million supply, deep liquidity, and portability as key advantages.
• The bank views Bitcoin and gold as complementary assets, not rivals to the U.S. dollar.

In its report, Deutsche Bank outlines several reasons behind Bitcoin’s growing legitimacy among global institutions. The cryptocurrency’s finite supply, decentralized network, and low correlation to traditional assets make it increasingly appealing to central banks seeking diversification beyond fiat currencies and government bonds.

The report reads:

“Like gold, Bitcoin has a fixed supply (capped at 21mn). This creates disinflationary benefits, meaning that Bitcoin’s value tends to not erode compared to fiat currencies, which lose purchasing power over time due to inflation.”

Bitcoin’s portability also gives it a clear edge during times of crisis. Unlike gold, which is heavy, costly, and slow to transport, Bitcoin can be moved anywhere almost instantly and at near-zero cost.

The analysts highlighted the practical challenges of gold storage:

“If one were to store either 0.001 BTC or 10,000,000 BTC, the cost would be the same: almost zero. This makes a Bitcoin reserve valuable during times of conflict compared to gold, as moving tonnes of gold out of an invaded country would be very difficult and costly. To put this into perspective, the Bank of England charges external central banks 3.5 pence per night for storing one gold bar, so the cost of storing 400,000 bars for a year would equal ~£5,110,000 in staff, security, maintenance and more.”

Despite its advantages, Deutsche Bank acknowledges that Bitcoin’s volatility remains a key obstacle to full institutional adoption. Still, analysts expect it to stabilize over time, similar to gold’s gradual maturation into a trusted monetary hedge.

The report also distinguishes between the Bitcoin network, which has never been compromised, and crypto exchanges, which have suffered numerous security breaches. This difference, analysts argue, reinforces Bitcoin’s technological resilience even amid industry setbacks.

Ultimately, the bank concludes that Bitcoin’s role in the financial system will expand meaningfully over the next decade.

“By 2030 we predict that Bitcoin will join gold in many central banks’ official reserve balance sheets… Bitcoin and gold are complementary diversifications to central bank portfolios. As we have underlined, Bitcoin and gold are deemed complementary alternatives to traditional safe-haven reserves due to their low correlation with other asset classes, relatively scarce supply, and use as a hedge against inflation and geopolitical volatility.”