Bitcoin News

Central Banks’ Renewed Gold Hunger Shows Need For A Hedge

A new survey suggested that central banks may be on the hunt for a hedge – a search that may lead some directly to digital gold, bitcoin (BTC), albeit via the central banking sector’s default asset of choice: gold.

In a new report focusing on the status of gold reserves in central banks conducted by Central Banker, 26 respondents, mainly from Europe and the Americas, said they “typically expect central bank gold holdings to increase over the next 12 months,” with “no respondent expecting a decrease.”

Although the central bankers were not quizzed on their thoughts regarding building up a reserve of BTC or altcoins, it appears that an increasingly large group of central bankers would rather hold onto a basket full of…well, anything but fiat.

The report’s authors wrote,

“When determining a central bank’s gold holding, the benefits of diversification stand out as the most relevant factor for reserve managers.”

In fact, 64% of respondents claimed that diversification benefits were “very relevant” to determining their institution’s gold holdings, with low-interest rates also placing in the “very relevant” column for 41% of respondents. Four respondents claimed that the weakening of the USD was also “very relevant” to their current stance on gold-buying.

In all 62% of the surveyed central bankers said they expected global central banks to boost their gold reserves over the next 12 months.

And a significant 18% of the respondents stated that of their total reserves portfolio, between 20%-49% was allocated to gold.

Gold price

An unnamed European nation’s central banker was quoted as stating,

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