Central banks rush to hoard gold as bitcoin joins reserve race
Central banks step up gold buying to a 2025 high while the US and others explore bitcoin as a new strategic reserve alongside bullion.
- Central banks significantly increased their gold purchases in late 2025, driven by economic uncertainty and a need to diversify reserves, with Poland being a leading buyer.
- The United States has officially established a national Strategic Bitcoin Reserve, funded by approximately 200,000 seized bitcoins, following a presidential executive order.
- The move towards digital reserves is expanding beyond the US federal level, as Texas became the first state to purchase bitcoin for its treasury and Taiwan considers adding it to its national reserves.
- Analysts predict that bitcoin will increasingly appear on central bank balance sheets alongside gold by 2030, serving as a hedge against inflation and geopolitical risk.
Central banks bought a net 53 tonnes of gold in October 2025, up 36% from the previous month and the strongest monthly total so far this year, according to World Gold Council data.
That took official sector net purchases for the year to 254 tonnes by the end of October, making 2025 the fourth-strongest year for central bank gold accumulation this century.
The buying spree underscores lingering concerns over economic stability and the need to diversify away from traditional reserve currencies.
Poland’s central bank leads the buying
The National Bank of Poland was October’s biggest buyer, adding 16 tonnes and pushing its gold reserves to a record 531 tonnes, equivalent to about 26% of its total foreign exchange reserves.
Brazil also increased its holdings by 16 tonnes, while Uzbekistan added 9 tonnes and Indonesia 4 tonnes. Turkey, the Czech Republic and Kyrgyz Republic each expanded their reserves by a further 2–3 tonnes.
At the same time, Ghana, China, Kazakhstan and the Philippines were also net buyers, while Russia trimmed its holdings by 3 tonnes to 2,327 tonnes.
A recent survey found that 95% of respondent central banks expect their gold reserves to rise further next year. Serbia, for example, plans to nearly double its bullion holdings to 100 tonnes by 2030, while Madagascar and South Korea are considering similar moves. Persistent demand despite record-high prices underlines gold’s strategic role in an increasingly uncertain world.
US designates bitcoin as a national reserve asset
The trend towards safe-haven reserves is now spilling into digital assets, as sovereign institutions begin to diversify beyond bullion and major currencies. Bitcoin is increasingly being discussed as a complementary reserve alongside gold.
In the United States, Senator Cynthia Lummis has said that budget allocation for a Strategic Bitcoin Reserve “can start anytime”, building on President Donald Trump’s executive order establishing bitcoin as a national reserve asset funded by seized digital holdings.
Under the order, the Treasury manages roughly 200,000 BTC, worth around US$17 billion at recent prices. The framework is designed to be budget-neutral, relying on confiscated assets.
The US House’s draft 2026 appropriations bill requires the Treasury to report within 90 days on the custody of these assets, standards for managing them, and the use of AI tools to enforce sanctions.
It also prohibits spending on a Federal Reserve central bank digital currency (CBDC). But there is still no legal requirement for the government to buy additional bitcoin beyond what it seizes, leaving the future path of US bitcoin reserves open to debate.
Economic modelling by asset manager VanEck suggests that if the US were to accumulate 1 million bitcoins by 2029, the reserve could offset around 18% of US public debt by 2049.
Analysts at CoinShares argue that such holdings could bolster America’s technological leadership and act as a hedge against inflation, while economists at Chainalysis warn that simultaneous accumulation by multiple countries could strain market liquidity and volatility.
Countries race to build bitcoin reserves
On November 20, Texas became the first US state to buy bitcoin for its treasury, investing US$10 million via BlackRock’s spot bitcoin ETF after a short-term price dip towards US$87,000.
The move reflects growing interest among sub-national governments in treating bitcoin as a strategic asset rather than a purely speculative one.
The momentum is not limited to the US. In Taiwan, legislators have called on the government to review the country’s bitcoin exposure and consider adding digital assets to its strategic reserves.Premier Cho Jung-tai has pledged to deliver a detailed report by year-end.
Lawmakers argue that Taiwan’s heavy reliance on US-dollar assets – which account for more than 90% of its US$602.94 billion in foreign reserves – poses concentration risks that bitcoin and other assets could help mitigate.
Analysts at Deutsche Bank expect bitcoin to appear on central bank balance sheets by 2030, sitting alongside gold as a hedge against inflation and geopolitical risk.
As countries accelerate their accumulation of both traditional safe-haven assets and digital assets, the international reserve landscape may be heading for a historic transformation.
