Should Central Banks Consider Holding Bitcoin Reserves?
February 26, 2026
In the current global economic landscape, central banks are facing heightened geopolitical tensions, prompting them to explore options to reduce their reliance on the US dollar. Bitcoin has emerged as a potential solution, with its appeal as a politically neutral reserve asset gaining momentum. However, despite the growing interest in Bitcoin, it is essential to consider its inherent volatility and relatively short track record compared to traditional safe-haven assets like gold.
The call for central banks to hold Bitcoin reserves was further propelled by US President Donald Trump’s 2025 executive order, which established a strategic Bitcoin reserve. This move caught the attention of private companies, investment banks, and scholars, who have since begun advocating for major central banks to follow suit. Kevin Warsh, Trump’s nominee for US Federal Reserve chair, echoed this sentiment, describing Bitcoin as the “new gold” in a recent interview.
While the idea of central banks diversifying their reserves to include Bitcoin is gaining traction, there are significant considerations to take into account. Bitcoin’s value is notoriously volatile, with extreme price fluctuations occurring frequently. This volatility poses a risk to central banks that rely on stable and secure assets to safeguard their economic stability. Additionally, Bitcoin’s relatively short track record compared to gold raises questions about its reliability as a safe-haven asset during times of crisis.
Despite these challenges, Bitcoin’s appeal lies in its status as a politically neutral asset. As central banks seek to reduce their dependence on traditional reserve currencies like the US dollar, Bitcoin offers a decentralized alternative that is not subject to the influence of any single government or central authority. This feature makes Bitcoin an attractive option for central banks looking to diversify their reserves and hedge against geopolitical risks.
The concept of central banks holding Bitcoin reserves raises important questions about the future of global finance and the role of digital assets in the monetary system. As geopolitical tensions continue to shape the economic landscape, central banks must carefully weigh the benefits and risks of integrating Bitcoin into their reserves. While Bitcoin’s potential as a safe-haven asset is alluring, its volatility and lack of a proven track record may pose challenges for central banks seeking to maintain stability and security in their reserves.
In conclusion, the debate surrounding central banks holding Bitcoin reserves highlights the evolving nature of global finance and the increasing interest in digital assets as alternative reserve assets. While Bitcoin offers unique advantages as a politically neutral asset, its volatility and limited track record present significant challenges for central banks seeking to diversify their reserves. As central banks navigate these complexities, the role of digital assets like Bitcoin in shaping the future of the global economy remains uncertain.