Bitcoin, once considered a wild gamble, is getting recognition from one of Europe’s biggest banks. In a recent report, Deutsche Bank said it believes bitcoin could join gold as a strategic reserve asset on central banks’ balance sheets by 2030.

The German bank compared Bitcoin’s current path, to gold’s journey to acceptance in the 20th century. “History appears to be repeating itself,” Deutsche Bank researchers wrote. “Like Bitcoin, gold was once subject to skepticism, suspicion, and demand speculation.”

Deutsche Bank’s paper on bitcoin in central banks’ reserves

A key argument from the bank is that bitcoin’s notorious volatility – long considered a barrier to entry – is decreasing. In August, bitcoin’s 30-day volatility fell to historic lows, even as the price hit an all-time high above $123,500.

“This combination suggests we may be witnessing the start of a gradual decoupling between Bitcoin’s spot prices and volatility as the crypto’s integration into portfolios is maturing,” Deutsche Bank analysts said.

The bank noted that lower volatility, plus more regulatory clarity in major markets like the U.S., UK and EU, could help bitcoin shed its speculative reputation.

Marion Laboure, a Deutsche Bank research analyst, even went so far as to say she could see bitcoin becoming “digital gold” in the next few years.

Deutsche Bank’s reports consistently say bitcoin will not dethrone the U.S. dollar as the world’s reserve currency. The dollar is still the biggest part of the central banks’ reserves, down from 60% in 2000 to 43% in 2025.

Instead, the bank sees bitcoin and gold coexisting as complementary assets. “There is room for both gold and Bitcoin to coexist on central bank balance sheets by 2030,” analysts Marion Laboure and Camilla Siazon wrote.

Gold hit an all-time high of $3,763 per ounce this year, up 40%, and attracting steady demand from central banks. A World Gold Council survey cited by Deutsche Bank found more than 40% of central banks plan to increase their gold reserves over the next year.

But Bitcoin’s institutional adoption — from ETFs to corporate treasuries — is getting it closer to being a reserve asset. Over 180 companies have already added the scarce digital asset to their balance sheets, after Michael Saylor’s Strategy started the trend in 2020.

Related: Institutions Now Hold Nearly 18% of Total Bitcoin Supply

For bitcoin to get onto central banks’ balance sheets, Deutsche Bank says certain conditions must be met, including clear regulatory frameworks, deep liquidity, secure custody, and contained volatility.

The bank pointed out progress. The U.S. and UK have agreed to form a joint digital asset task force, while regulators in Europe and Asia are introducing licensing regimes and prudential standards for digital asset firms.

In China and other Asian financial hubs, rules are becoming more transparent.

With stronger rules, institutional infrastructure and broader adoption, bitcoin could become what Deutsche Bank has called “the 21st century gold”.

Like gold, bitcoin’s appeal as a reserve asset comes from its scarcity and potential as a hedge against inflation and geopolitical shocks. Analysts noted that central banks, especially in emerging markets facing inflationary pressures, may find bitcoin particularly attractive.

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Filed under: Altcoins - @ September 26, 2025 11:12 am