The inclusion of bitcoin in central bank reserves has been gaining traction since President Donald Trump's executive order in 2025. Private companies and investment banks are urging major central banks to consider adding bitcoin to their reserve portfolios. Kevin Warsh, Trump's nominee for Federal Reserve chair, has also echoed this sentiment, describing bitcoin as the 'new gold.'
Warsh's comments come as China and other emerging markets have been diversifying away from the US dollar by accumulating gold reserves. This move is seen as a way to reduce dependence on the dollar and build resilience against US financial sanctions.
The argument in favor of including bitcoin in central bank reserves is that it could strengthen reserve portfolios and provide a hedge against potential currency fluctuations. However, the recent plunge in bitcoin prices has raised questions about its suitability for national reserves.