Bitcoin enters reserve conversation, but gold still rules
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BlackRock’s latest report frames de-dollarization as a genuine trend, with gold rising and Bitcoin now entering conversations at the sovereign level. Summary BlackRock’s July report calls de-dollarization a reality, driven by geopolitical stress, inflation, and weakening confidence in U.S. debt. Central banks are accumulating gold at a record pace, with official holdings nearing levels last seen over 50 years ago. Bitcoin has entered reserve-level discussions, with mentions in formal reviews and proposals by central banks and sovereign entities. Governments, including the U.S., Pakistan, and Texas, have established strategic Bitcoin reserves outside traditional central bank frameworks. Bitcoin’s institutional inflows, ETF growth, and clearer regulation are positioning it as a possible long-term hedge under observation. De-dollarization gets real BlackRock, which manages nearly $12.5 trillion in assets, stated in a July 2025 report that de-dollarization has moved from theory to reality. Central banks are gradually reducing their reliance on the U.S. dollar and moving toward a more diversified mix of reserve assets. The report attributes this transition to rising geopolitical tensions, persistent inflation and renewed concerns over U.S. credit stability. President Donald Trump addressed the topic on Friday, explaining that while he liked a strong dollar, “you make a hell of a lot more money” with a weaker one. Indeed, the U.S. dollar has fallen over 10% in six months—a steep drop not seen since 1973’s post-gold standard shift. Such a scenario can also boost cryptocurrency by driving demand for alternative stores of value like Bitcoin. That makes dollar-priced crypto assets cheaper for foreign buyers and can erode confidence in fiat currencies, pushing more investors (Trump being one) toward decentralized options. Rethinking the reserve playbook In 2024, central banks purchased over 1,000 metric tons of gold, more than twice the average annual total of the previous decade. Total official holdings are now approaching…
