- Despite media impressions of growing central bank interest in cryptocurrencies, a recent survey shows only 2.1% of central banks plan to invest in them within 5-10 years.
- None of the 91 surveyed central banks currently invest in digital assets, though 11.6% believe cryptocurrencies are becoming more credible investments.
- Central banks show greater interest in traditional safe haven assets, with 37.5% planning to increase Gold positions in the coming year.
Central banks are showing less interest in cryptocurrency investments than media reports might suggest, according to a new Central Banking survey of reserve managers. The survey, conducted in January and February 2024, revealed that just 2.1% of central bank respondents would consider investing in cryptocurrencies within the next five to ten years, down from 15.9% in last year’s survey.
The comprehensive study, covering 91 central banks that collectively manage over $7 trillion in reserves, found that none currently hold digital asset investments. While central banks remain hesitant about cryptocurrencies, opinions are somewhat mixed. About 23% of respondents indicated uncertainty about Bitcoin as an appropriate investment class, and 11.6% acknowledged that cryptocurrencies are becoming more credible investments.
Bitcoin as Strategic Reserve Receives Limited Support
When asked about the concept of a bitcoin strategic reserve, only one central bank expressed support. A majority of 59.5% (50 central banks) opposed the idea, while a significant 39.3% (33 central banks) remained uncertain. The survey was completed before former U.S. President Trump’s March executive order regarding the creation of a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, though he had briefly mentioned the concept in a January digital asset executive order.
Some market participants view Bitcoin as a safe haven asset, though its price movements sometimes correlate with stock market trends. By contrast, traditional safe haven assets continue to attract central bank interest. The survey indicated that 37.5% of respondents (27 out of 72) plan to increase their gold positions in the coming year, with none planning reductions.
Economic Concerns Beyond Digital Assets
Beyond cryptocurrency considerations, central banks expressed broader economic concerns. Despite being conducted earlier in the year, survey respondents identified U.S. protectionist policies as the single biggest risk factor. This concern appears to have materialized sooner and more significantly than anticipated, following recent U.S. tariff announcements.
The survey results suggest a continuing cautious approach to cryptocurrency adoption among central banks, contrasting with some media narratives suggesting growing institutional acceptance. Traditional assets like gold continue to dominate central bank reserve strategies, with digital assets remaining a peripheral consideration for most monetary authorities worldwide.
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