Deutsche Bank: Bitcoin may become a central bank reserve asset within 10 years, serving as a complementary hedge asset to gold

ChainCatcher news, according to Coindesk, Deutsche Bank stated that Bitcoin may appear on central banks' balance sheets alongside gold, serving as a complementary hedge asset, but both are unlikely to replace the dollar as the primary reserve currency.

Deutsche Bank (DBK) noted in a report on Monday that Bitcoin is expected to become a recognized reserve asset alongside gold within the next decade, although precious metals may still maintain a leading position in official holdings for now. Deutsche Bank believes that due to the scarcity of Bitcoin and gold, as well as their low correlation with other assets, they will continue to coexist as complementary assets to hedge against inflation and geopolitical risks.

The bank stated that both Bitcoin and gold are unlikely to replace the dollar, as governments will take action to protect monetary sovereignty. The adoption of Bitcoin will follow a path similar to that of gold, transitioning from skepticism to widespread acceptance, with regulation, macroeconomic trends, and time paving the way.

The report indicated that as investors continue to seek alternatives to traditional assets, Bitcoin may evolve from a speculative investment into a legitimate pillar of the global financial system.