Recent changes in central banks' reserves, where gold has overtaken U.S. Treasuries, raise significant interest in the state of the dollar and the future of Bitcoin.
Historic Shift: From U.S. Treasuries to Gold
Central banks now hold approximately 36,700 tons of gold, valued at $4.5 trillion, compared to $3.5 trillion in U.S. Treasuries. This is a turning point not seen since the mid-90s.
Reasons Central Banks Are Buying Gold
According to the latest survey by the World Gold Council, central banks purchased more than 1,000 tons of gold last year. The main reasons include hedging against currency risk, inflation, and instability in the fiat monetary system. As gold strategist Christopher Louney noted, 'Trust in fiat is cracking'.
Bitcoin's Role in the Shift
This week, the U.S. government announced the creation of a Strategic Bitcoin Reserve, stating that Bitcoin will be treated as a permanent reserve asset. Other countries, including Brazil and Russia, are also considering Bitcoin reserves, signaling central banks' interest in digital assets as a safeguard against dollar volatility.
The pivot towards gold and Bitcoin signals the need for a more transparent and stable reserve policy. It also opens new prospects for investors seeking reliable assets amid global economic uncertainty.
