As geopolitical tensions rise, central banks are intensifying efforts to reduce dependence on the U.S. dollar.
While Bitcoin’s appeal as a politically neutral reserve asset is growing, it remains highly volatile and lacks the long track record that underpins gold’s status as the ultimate safe haven.
Following President Donald Trump’s 2025 executive order establishing a strategic Bitcoin reserve, private companies, investment banks, and scholars have begun urging major central banks to consider doing the same.
Trump’s nominee for US Federal Reserve chair, Kevin Warsh, echoed this sentiment in an interview last year, describing Bitcoin as the “new gold”.
Geopolitical tensions are driving central banks to rethink their dependence on the U.S. dollar.
Bitcoin is increasingly viewed as a politically neutral reserve asset, even as its price swings and limited history complicate adoption compared with gold.
Since President Donald Trump’s 2025 executive order establishing a strategic Bitcoin reserve, policymakers, financial institutions, and researchers have urged major central banks to explore similar reserves.
In public remarks, Kevin Warsh, Trump’s nominee for Federal Reserve chair, described Bitcoin as the “new gold”.
Supporters argue a sovereign Bitcoin reserve could enhance financial sovereignty, but volatility, custody challenges, and governance questions remain major hurdles.
Central banks must weigh policy implications, regulatory frameworks, and risk management before any formal adoption.
Ultimately, the pace of adoption will hinge on liquidity, transparency, and the perceived credibility of Bitcoin as a reserve asset when compared with gold and other anchors.
Regulators and central banks will also consider governance, custody, and risk management frameworks as essential prerequisites.
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