Deutsche Bank has unexpectedly stepped into the role of Nostradamus for global finance. The bank predicts that Bitcoin could find its place in central bank reserves alongside gold by 2030. This prediction is based on a sober analysis of volatility, liquidity, strategic value, and trust.
The study’s conclusion strikes a diplomatic note: Bitcoin is not a replacement for gold but a complement. In other words, if gold is the classic suit in the wardrobe, Bitcoin is the luxury accessory that was once dismissed as frivolous but is now the object of envy.
Demand is fueled by the deficit. Of the maximum 21 million coins, around 19.92 million are already in circulation, and the remaining 5% is set to be mined over the next 115 years. While this leaves plenty of time, the very notion of “digital gold with a timer” is attracting not only funds but also governments. As always, history rhymes. Gold was once also viewed with skepticism before ending up locked away in guarded vaults.
Institutional adoption is already reshaping the market. Even as Bitcoin’s price surged to a record high of $124,500 in August, its thirty-day volatility fell to historic lows. Bitcoin is shedding its reputation as a toy for speculators and evolving into a serious financial instrument.
Deutsche Bank is candid in its assessment that neither Bitcoin nor gold is poised to dethrone the dollar as the world’s reserve currency. They act as hedges against inflationary shocks and geopolitical turmoil, providing protection when investors seek security rather than luxury.
The icing on the cake is that the bank is preparing to offer corporate clients custody services for digital assets. To this end, it has teamed up with Bitpanda and Switzerland-based Taurus.
