Since cryptocurrencies are gaining the adoption of the mainstream, there is a new question: Will central banks start to accumulate digital assets within their official reserves? With increasing interest in decentralized finances (defi), stablecoins and CBDC (digital currencies of central bank), the role of crypto in the global monetary system is developing rapidly. This article examines factors affecting the potential shift of central banks towards possession of cryptocurrencies, related risks and what such a shift could mean for the future of global financing.
Message: Accepting bitcoins as a reserve currency - conduit but not impossible
Today's Date: April 29, 2025
"It's difficult, but not impossible ..." - This financial and technology experts describe the potential acceptance of bitcoins as reserve currencies by central banks around the world. The situation, however, becomes even more complicated for the main currency of Fiat, especially the dominant US dollar.
From the first days to a major disturbance
Since the establishment of cryptocurrencies in 2009 to 2013, the market remained relatively calm. However, the massive increase in bitcoins in 2017 - with the strongest and strongly recognized digital currency -, however, in the traditional financial markets has planted shock waves. This sudden rise has attracted the attention of investors, central banks and governments, which caused stricter regulations. Despite these limitations, cryptocurrencies continued to grow, with more than 10,000 digital currencies now.
Government Resistance and the rise of CBDC
After failing to limit the expansion of cryptocurrencies through regulations, central banks began to examine their own digital currencies. China took the lead by launching digital Juan in February 2023. Meanwhile, the US has to make significant progress in the digital dollar, while the European payment giant Nexi is working with the European Central Bank (ECB) to develop the digital euros.
Difficult but not impossible
Hossam Taleb, the financial markets and an electronic trading analyst, believe that while receiving bitcoins as a reserve currency is now demanding, it may not be impossible in the near future.
In a statement to an independent Arabia, Taleb explained:
"The lack of regulatory frames and the guarantees on the cryptocurrency market remains the greatest obstacle. Despite government interventions, the market has exceeded the limitations and has reached significant growth."
He added that the current data indicate ongoing expansion, forcing central banks to engage in the market, develop regulatory mechanisms, and consider its benefits - especially because of the speed and confidentiality of crypto transactions.
If cryptocurrencies were admitted as reserve assets, large Fiat currencies like the US dollar and euro would face significant challenges. In particular, the dollar is already under pressure due to geopolitical tension and the growing trend between nations to diversify from it in business settlements.
The role of digital currencies of the central bank (CBDC)
The recent report of Bank for International Settlements (BIS) stressed that CBDC could drastically shorten the time and cost of cross -border payments. Pilot programs have shown that transactions have settled in seconds-comparable to traditional 3-5 days required by banks. In addition, CBDC could reduce payment costs by up to 50%.
The weakest phase of the dollar for decades
Goldman Sachs recently described the current period as "the weakest phase of the US dollar in recent history". Meanwhile, Morgan Stanley expects a potential reflection, despite the growing US current account deficit - now at the highest level since 2008.
Deutsche Bank AG agrees with Bearish Outlook Goldman and compares today's dollar trends with its decline in 2002 to 2007. But Morgan Stanley and Horizon SLJ Capital claim that the dollar could still be strengthened, as it was in 80 and 90 years.
Goldman Sachs analysts indicate that investors should avoid long-term US-revenue and capital markets, as assets outside the US are now offering a more competitive revenue-factor that could continue to weaken the dollar over time.