David Edwards
Deutsche Bank, the German multinational investment bank, has expressed support for the proposed U.S. Bitcoin reserve, emphasizing its potential role in national financial strategy.
Matthew Sigel, Head of Digital Assets Research at VanEck, highlighted the bank’s latest research on the subject in a recent post on social media.
Bitcoin as a Strategic Reserve Asset
According to Deutsche Bank Research, Bitcoin’s fixed supply, decentralization, and security position it as a viable strategic reserve asset, comparable to gold. The report underscores Bitcoin’s scarcity and resilience, suggesting it could enhance the U.S. financial system by acting as a hedge against inflation and dollar depreciation.
Furthermore, the bank argues that incorporating Bitcoin into national reserves would strengthen the country’s crypto leadership and establish international standards, much like the role of U.S. gold reserves in the 20th century.
Bitcoin’s Low Correlation with Traditional Assets
The bank’s January 2025 asset correlation matrix further supports Bitcoin’s inclusion in reserves. The data indicates that Bitcoin has a low correlation with stocks, bonds, and commodities, reinforcing its role as a macroeconomic hedge.
Impact on Global Bitcoin Adoption
Industry experts, including Bitwise CIO Matt Hougan, have also weighed in on the potential benefits of a U.S. Bitcoin reserve. Hougan believes such a move would:
- Reduce the likelihood of the U.S. banning Bitcoin.
- Signal institutional recognition of Bitcoin as an asset class.
- Encourage other nations to follow suit, driving global adoption.
- Challenge traditional financial institutions’ anti-Bitcoin stance, including that of the European Central Bank.
As Bitcoin’s price appreciation continues, Deutsche Bank suggests that holding it as a reserve asset could strengthen public finances and offset national debt, further solidifying its strategic importance.
