Central Banks Go All-In On Gold In 2025 As Bitcoin Sparks Reserve Revolution

Forget diversification—2025 is the year central banks doubled down on the ultimate safe haven. While headlines scream about digital assets, the world's monetary authorities are quietly executing the largest gold-buying spree in modern history.

The Real Reserve Race

It's not just about hedging against inflation anymore. This aggressive accumulation signals a deeper, more fundamental shift in how nations perceive monetary security. The physical metal's timeless appeal—untethered from any government's balance sheet or monetary policy—is experiencing a powerful renaissance.

Bitcoin: The Digital Catalyst

Here's the twist fueling the frenzy: Bitcoin. The original cryptocurrency's relentless march toward mainstream legitimacy has central bankers watching closely. Its emergence as a potential, albeit volatile, non-sovereign store of value is forcing a strategic rethink. Gold's surge isn't happening in a vacuum; it's a direct response to the digital challenger at the gate. Some might call it an expensive insurance policy against a future they don't fully control.

A Tale of Two Assets

So, while gold enjoys a historic moment in the sun, Bitcoin is busy rewriting the rules of the game. One represents millennia of entrenched value, the other a decade of disruptive potential. Central banks are covering their bets with bullion, even as they can't ignore the digital gold narrative gaining traction in treasury corridors worldwide. It's the ultimate hedge—buying the past while nervously eyeing the future, a classic move from institutions that would rather be late than wrong. For now, the old guard gets the capital, but the new guard has all the momentum.

TLDR

• Central banks bought 53 tonnes of gold in October 2025, the highest monthly total this year.
• Poland and Brazil led October’s gold buying, each adding 16 tonnes to their reserves.
• The U.S. Treasury holds around 200,000 BTC valued near $17 billion under a reserve framework.
• Texas purchased $10 million in Bitcoin through a spot ETF on November 20, 2025.

Central banks are increasing gold reserves at the fastest monthly pace in 2025, signaling a growing shift from the U.S. dollar. With gold purchases hitting the highest monthly total this year, attention is turning toward Bitcoin as a potential strategic reserve asset, especially following U.S. policy developments.

Central Banks Increase Gold Reserves Amid Global Uncertainty

Central banks bought 53 tonnes of Gold in October 2025, marking the strongest month for gold accumulation this year. This total represented a 36% increase from the previous month, according to the World Gold Council.

The National Bank of Poland led the purchases, adding 16 tonnes and bringing its total reserves to 531 tonnes, now representing about 26% of the country’s total foreign exchange reserves. Brazil matched Poland’s purchase, while Uzbekistan, Indonesia, and others also added to their holdings.

Ghana, China, Kazakhstan, and the Philippines also raised their reserves, while Russia reduced its total by 3 tonnes. Turkey, the Czech Republic, and the Kyrgyz Republic added 2 to 3 tonnes each.

Strategic Shift Away from Dollar-Denominated Assets

The trend reflects a shift in central bank reserve strategy, with growing concerns about economic volatility and inflation. So far in 2025, central banks have added 254 tonnes of gold to reserves, making it the fourth-highest accumulation year since 2000.

A World Gold Council survey found that 95% of central banks expect global reserves to rise in 2026. Serbia aims to nearly double its gold holdings to 100 tonnes by 2030. Countries such as Madagascar and South Korea are exploring similar plans.

Despite high gold prices, central banks continue to build reserves. This behavior suggests they view gold as a long-term store of value during uncertain periods.

Bitcoin Gains Attention as a Reserve Asset

The U.S. has formally recognized bitcoin as a national reserve asset under a 2025 executive order. Senator Cynthia Lummis noted that funding for a Strategic Bitcoin Reserve could begin at any time.

Currently, the U.S. Treasury manages around 200,000 BTC—roughly $17 billion—using Bitcoin seized from criminal cases and stored under a budget-neutral model. While no additional Bitcoin purchases are currently required, lawmakers are studying future options.

The 2026 appropriations bill includes a 90-day Treasury review on how to manage digital assets, custody systems, and the use of AI for sanctions compliance. It also prohibits the use of funds for a central bank digital currency.

States and Countries Begin Building Bitcoin Reserves

Texas became the first U.S. state to officially buy Bitcoin for its treasury. On November 20, the state purchased $10 million in BTC through a BlackRock-managed spot ETF, following a market dip to $87,000.

Elsewhere, Taiwan’s parliament has asked its government to examine national Bitcoin holdings and assess the possibility of expanding them. Premier Cho Jung-tai has committed to delivering a report by the end of the year. Lawmakers expressed concern about Taiwan’s heavy reliance on U.S. dollar-denominated assets, which currently make up more than 90% of its $602.94 billion in reserves.

Deutsche Bank analysts estimate that Bitcoin could begin appearing on central bank balance sheets by 2030. Analysts believe Bitcoin may work alongside gold as a hedge against both inflation and geopolitical risks.