Decreasing Number of Central Banks Planning to Invest in Digital Assets Over the Next 5-10 Years

Central reporting suggests a growing inclination among banks, particularly central ones, towards venturing into cryptocurrency investments. Reciprocally, a recent Central Banking report indicates this trend.

, and Administrator

2025 September 3 . 6:47 AM

3 min read

Central banks reconsidering investment in digital assets within the next 5 to 10 years.

Decreasing Number of Central Banks Planning to Invest in Digital Assets Over the Next 5-10 Years

In a significant shift, central banks around the world have shown a growing interest in cryptocurrencies, moving towards strategic engagement and institutional-grade digital currency development. This trend, which emerged in early 2025, reflects a cautious adoption of these digital assets, driven by regulatory innovation.

Diversifying Portfolios with Bitcoin

More than a dozen countries, including the U.S., El Salvador, and Bhutan, have included Bitcoin in their national reserves. This move is aimed at diversifying portfolios, hedging against inflation, and enhancing crisis resilience. This shift from outright liquidation to long-term strategic management of Bitcoin as a reserve asset marks a significant step forward.

Cautious Approach from Major Economies

Despite this, major economies like the EU, Japan, India, and China remain cautious or exclude Bitcoin from their reserves. They cite volatility and regulatory risks as reasons for their hesitance, continuing to prioritize traditional assets like gold and fiat currencies.

Regulatory Clarity Accelerates Adoption

Regulatory clarity, particularly in the U.S. through executive orders and the EU’s fully active Markets in Crypto-Assets (MiCA) regulation, has accelerated institutional adoption of crypto assets and blockchain pilots by banks and fintech companies.

Refocusing on Wholesale CBDCs

Central banks are now refocusing their digital currency efforts from retail-targeted Central Bank Digital Currencies (CBDCs) to wholesale CBDCs. These are intended for interbank settlements and international transfers, aimed at modernizing financial infrastructure and improving capital flow.

The U.S. and CBDCs: A Complex Picture

The U.S., while supporting dollar-backed stablecoins, reportedly opposes Federal Reserve-issued CBDCs. This reflects the complex policy dynamics around central bank digital assets.

A Nuanced Increase in Interest

Various 2025 reports and surveys suggest an increase in central bank interest in cryptocurrencies and digital assets beyond speculative use. This emphasis is on strategic reserve diversification, institutional-grade innovation, and wholesale CBDC development. However, caution and regulatory prudence persist, influencing the pace and scope of adoption among global central banks.

Key findings from these surveys include:

11.6% of central banks view cryptocurrencies as becoming a more credible investment.
Only 2.1% of central banks considered investing in cryptocurrencies over the same timescale.
91 central banks managing over $7 trillion in reserves do not have digital asset investments.
50 central banks are against the idea of a bitcoin strategic reserve.
A significant number (33) of central banks are unsure about the idea of a bitcoin strategic reserve.
No central banks currently consider bitcoin an appropriate investment class.
23% of central banks are unsure about the appropriateness of bitcoin as an investment.
Only one central bank is supportive of a bitcoin strategic reserve.

Looking Ahead

As we move forward, it will be interesting to see how these trends evolve. With the recent announcement of a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile by the Trump administration, we can expect to see further developments in this area.

Despite the survey being conducted earlier in the year, before the latest round of US tariffs, survey respondents cited US protectionist policies as the single biggest risk. It will be crucial for central banks to navigate this complex landscape with caution and strategic foresight.

Traditional safe havens, such as gold, are expected to continue attracting investment from central bankers, with 27 out of 72 (37.5%) planning to increase their positions, and none looking to reduce their exposure.

In conclusion, while the adoption of cryptocurrencies by central banks is progressing with caution, the trend towards strategic engagement and institutional-grade digital currency development is undeniably on the rise. As regulatory clarity continues to improve and innovative use cases for CBDCs emerge, we can expect to see more central banks exploring the potential of these digital assets.