Major German bank Deutsche Bank released a report Monday predicting Bitcoin could appear on central bank balance sheets by 2030. The bank says Bitcoin will work alongside gold as a backup asset, not replace it.
This marks a big shift in how traditional banks view Bitcoin. The world’s largest cryptocurrency has gone from being seen as risky speculation to a potential tool for central banks.
Bitcoin’s Growing Stability Makes It More Attractive
The main reason Deutsche Bank thinks central banks will adopt Bitcoin is its dropping volatility. Bitcoin’s 30-day price swings hit historic lows in August 2025, even as prices topped $123,500.
This suggests Bitcoin is moving away from wild price swings toward more stable behavior. Implied volatility fell to just 32%, well below the 50% one-year average.
“Bitcoin’s volatility, long an obstacle to reserve status, is dropping,” Deutsche Bank analysts said. The cryptocurrency may be breaking free from its speculative past.
When Bitcoin’s market value exceeded $500 billion with yearly volatility below 50%, it created a situation that had never happened before. This type of low volatility has only occurred during 5% of Bitcoin’s existence.
Governments Already Building Bitcoin Reserves
Several countries have started accumulating Bitcoin reserves, showing Deutsche Bank’s prediction may already be coming true.
The United States holds the largest government Bitcoin stash with about 198,000 Bitcoin, worth roughly $20 billion. President Trump signed an executive order in March 2025 creating a strategic Bitcoin reserve using seized cryptocurrency.
El Salvador leads in Bitcoin adoption as a national strategy. The country holds 6,319 Bitcoin worth $725 million, with an unrealized profit of $208 million. However, El Salvador recently agreed to reduce Bitcoin purchases as part of a $1.4 billion loan deal with the International Monetary Fund.
Bhutan takes a different approach by mining Bitcoin with renewable energy. The small Himalayan nation holds 10,565 Bitcoin worth $1.2 billion, accumulated through hydroelectric-powered mining operations.
The Czech Republic could become the first Western central bank to officially buy Bitcoin. Central bank Governor Aleš Michl proposed allocating up to 5% of the country’s €140 billion reserves into Bitcoin.
US States Lead Domestic Adoption
American states are moving faster than the federal government on Bitcoin reserves. New Hampshire became the first state to establish a Strategic Bitcoin Reserve in May 2025. Governor Kelly Ayotte signed a law allowing the state to invest up to 5% of total funds in Bitcoin.
Texas followed with its own Bitcoin reserve law in June 2025. Several other states including Oklahoma and Utah have advanced similar bills through their legislatures.
These state-level moves show growing acceptance of Bitcoin as a legitimate reserve asset, even while the Federal Reserve remains opposed.
Federal Reserve Pushes Back
Not everyone agrees with Deutsche Bank’s prediction. Federal Reserve Chair Jerome Powell has repeatedly said the central bank cannot and will not hold Bitcoin.
“The Federal Reserve Act specifies what we can own, and Bitcoin is not part of that list,” Powell stated. “We’re not looking for a law change at the Fed.”
A February 2025 survey of economists by the University of Chicago found zero economists agreed that creating a strategic crypto reserve would benefit the US economy.
This resistance from traditional financial institutions shows Bitcoin still faces major hurdles in gaining acceptance as a central bank asset.
Bitcoin Won’t Replace the Dollar
Deutsche Bank emphasized that Bitcoin and gold will complement, not replace, the US dollar as the world’s primary reserve currency. The dollar still makes up 57% of global reserves.
“Neither bitcoin nor gold is likely to dethrone the dollar, as governments will act to protect monetary sovereignty,” the bank’s analysts wrote.
However, signs of diversification are emerging. China’s US Treasury holdings fell $57 billion in 2024, and momentum for crypto regulation is building in major markets.
The bank sees Bitcoin following a similar path to gold’s acceptance – moving from skepticism to widespread adoption through regulation, economic trends, and time.
The Digital Gold Rush Begins
Deutsche Bank’s prediction reflects Bitcoin’s transformation from a speculative asset to a potential cornerstone of global finance. With governments already accumulating Bitcoin and volatility reaching historic lows, the cryptocurrency appears positioned to join gold in central bank vaults. Whether this happens by 2030 will depend on continued market maturation and regulatory clarity, but the foundation is already being laid.