Despite growing interest in cryptocurrencies, only a small fraction of central banks are considering storing Bitcoin in strategic reserves.
Central Banks' Caution Towards Cryptocurrency
According to OMFIF's latest survey, only 3% of central banks foresee building strategic Bitcoin reserves over the next decade. The cautious approach is attributed to volatility, regulatory uncertainty, and structural conservatism within these financial institutions. Shawn Young, chief analyst at MEXC Research, stated, 'Central banks tend to prioritize stability and liquidity, all the qualities that Bitcoin, despite its resilience, does not consistently offer yet.'
Diversification of Assets and Growing Interest
While only 3% of respondents foresee building a Bitcoin reserve, about 10% expressed consideration to increase allocations to digital assets, primarily focusing on tokenized securities. The survey also shows significant interest among central banks to diversify away from traditional government bonds, with more than 25% of respondents looking to increase exposure to corporate bonds and equities.
Examples of Early Adopter Countries
Countries like El Salvador and Bhutan display a more proactive approach towards Bitcoin reserves. El Salvador's move to make Bitcoin legal tender has attracted attention but raised concerns with the IMF. Bhutan mines Bitcoin using renewable energy, turning resources into a digital reserve. Young noted, 'Bhutan's approach allows for low-key, infrastructure-first access to Bitcoin without purchasing on open markets.'
Thus, despite Bitcoin's growing legitimacy, central banks remain cautious regarding its inclusion in reserves. However, changes such as the initiative in Switzerland may signal a potential evolution in the approach to digital assets.
