BlackRock’s latest report frames decooperative as a true trend, with Gold Rising and Bitcoin currently entering into conversation at the sovereign level.
summary
- BlackRock’s July report calls non-interference reality due to geopolitical stress, inflation, and weakening reliability in US debt.
- Central banks are accumulating gold at a record-breaking pace, with official holdings approaching the level they were last seen over 50 years ago.
- Bitcoin took part in the preliminary level discussion with formal reviews and suggestions by the central bank and sovereign entities.
- Governments, including the US, Pakistan and Texas, have established strategic Bitcoin reserves outside the traditional central bank framework.
- The institutional influx of Bitcoin, ETF growth, and more clearer regulations position it as a possible long-term hedge under observation.
Derailment becomes a reality
BlackRock, which manages nearly $12.5 trillion in assets, said in a July 2025 report that decooperativeization has shifted from theory to reality.
Central banks are gradually moving towards a more diverse combination of reserve assets, reducing their dependence on the US dollar.
The report attributes the transition to growing geopolitical tensions, sustained inflation and emerging concerns about US credit stability.
President Donald Trump spoke to the topic on Friday, explaining that he liked strong dollars but “you make more money.”
In fact, the US dollar fell by more than 10% in six months. There has been no steep decline since the standard post-gold shift in 1973. Such a scenario could also boost cryptocurrency by driving demand for valuable alternatives like Bitcoin. This makes dollar-price crypto assets cheaper for foreign buyers, potentially eroding trust in Fiat currency, pushing more investors (Trump is one) into a decentralized option.
Rethinking the Reserve Playbook
In 2024, the central bank purchased over 1,000 tons of gold. This was more than twice the average annual total over the past decade. Currently, the total official holdings are approaching 36,000 tons, which is not seen in over 50 years.
Gold currently accounts for around 20% of the world’s reserves. Data cited by Business Insider shows that the dollar’s share has dropped to around 46%, with other currencies and the euro accounting for 18% and 16% respectively.
Gold remains a core hedge, but the report points out that there is an increasing number of references to Bitcoin (BTC) in the discussion of sovereign reserves.
BlackRock characterizes it as a decentralized, non-sorber asset with a fixed supply, which can retain strategic value over time.
The central bank has not yet added Bitcoin to its holdings in confirmed quantities, but its appearance in official analysis marks the beginning of a new chapter.
Central banks load it into bullion
The central bank continued to be added to its gold reserves in early 2025, with first quarter acquisitions surpassing 244 metric tons. The exchange sales fund linked to gold also saw updated demand and drew inflows of nearly $30 billion, a level not recorded since 2020.
A May update of the World Gold Council reported that Kazakhstan-led 20 metric tonnes of monthly purchases for seven tonnes followed by Turkey and Poland for six tonnes each.
A 2025 survey by reserve managers found that 95% expected the global official gold holdings to rise further next year.
Almost half of respondents plan to increase their own gold reserves, but hope that over 70% will reduce their US dollar exposure within five years in favor of gold, the euro and Chinese yuan.
Emerging markets remain active in this transition. Countries such as Azerbaijan, China and Iran are among the most consistent buyers based on the need to protect protected areas from sanctions and currency-related volatility.
In April, gold prices peaked at around $3,500 per troy ounce. The metal focus estimates have a value of approximately $80 billion for the official gold purchase this year, and could grow further in 2026 depending on geopolitical and financial conditions.
China’s central bank has played a major role in this accumulation. Reported gold reserves increased from about 2,000 metric tons in the second half of 2022 to 2,299 metric tons by mid-2025.
Some analysts believe that China’s actual figures could be higher based on import activities and out-of-balance sheet storage.
The current trend shows a sharp reversal from the era of net selling that began in the late 1990s. Since 2023, central banks have accounted for almost 25% of global gold total demand, earning bullion at more than five times the speed of ETF inflows.
Over the past five years, one in eight ounces of newly mined gold has been absorbed directly into the sovereign safe.
Bitcoin raises interest in policy circles
The spare conversation has expanded beyond physical metals and Fiat currency. Full-scale adoption remains unlikely in recent years, but Bitcoin is beginning to appear in official level debate.
In January 2025, the Czech National Bank became the first major Western financial authorities to launch a formal internal review of the potential of Bitcoin as part of its reserves. The governor proposed that up to 5% of the bank’s 140 billion euro portfolio could be considered.
In Switzerland, a citizen-led campaign has urged the Swiss National Bank to consider a modest Bitcoin allocation of 1-2% of its holdings.
Despite increasing visibility in the policy world, actual adoption between central banks remains very limited.
A 2025 survey by Central Banking Publications found that no one holds Bitcoin, as it covers more than 91 central banks that manage a $7 trillion reserve. Only 2% have expressed their intention to invest in crypto assets within the next five to ten years, a sharp decline from almost 16% in the previous year.
Another rating by OMFIF’s Global Public Investor 2025 reflects these findings, with 93% of central banks saying they have no plans to include digital assets in their portfolios.
The unwillingness stems from the high price volatility of Bitcoin, uncertain liquidity under stress, and the unresolved challenges of detention and cybersecurity.
Many central banks also face structural limitations, such as legal barriers and conservative investment frameworks that support assets with long history, stable returns, and mature monitoring mechanisms.
Bitcoin is more than a decade old, but in the views of most public institutions, it still falls short of these standards.
Despite central banks’ hesitation, some governments and by-edition entities have begun taking measured measures.
In March 2025, the US government officially made its strategic Bitcoin reserve, placing approximately 200,000 seized Bitcoin in non-trading accounts that are not managed by the Treasury.
Future additions must be budget neutral and will turn the reserve into a passive reservoir of previously acquired assets.
Texas has placed it as a long-term hedge following a law that allocates $10 million to its own Bitcoin reserve. Pakistan has also announced plans to establish a sovereign Bitcoin Reserve under the Ministry of Finance.
Among the more advanced examples, El Salvador currently holds over 6,000 BTC, but uses have been reduced in loan negotiations with the IMF.
Bhutan’s reserves are reportedly representing almost 28% of GDP, indicating that small countries with favorable energy conditions can use Bitcoin as a strategic asset in an unconventional way.
Increased price and legitimacy of Bitcoin
Bitcoin’s sharp climb in 2025 attracted new attention to its role in the changing global reserve discussion.
On July 14th, it exceeded $123,000, earning about 75% since the second half of 2024. The rise has driven more than $50 billion in facility inflows led by BlackRock’s Ishares Bitcoin Trust.
Interestingly, the growth of the BTC ETF outperformed the early performance of the major gold ETF, revealing how quickly Bitcoin has moved into the mainstream of institutional allocation.
As of July 26th, Bitcoin has traded for around $118,000, an increase of 10% from a month ago.
Source: Coingecko
In parallel, clarity of regulations has made meaningful advances. The United States has passed clear laws and genius laws that define digital assets under federal law and provide clear guidance to market participants.
In addition to these legislative moves, federal resistance to launching central bank digital currencies has strengthened the distinct position of Bitcoin as a decentralized alternative, rather than a state-backed currency device.
Furthermore, according to Vanek, Bitcoin’s volatility on stocks has declined, supporting the case as a mature asset with potential use as a valuable repository.
As central banks reevaluate their reserve strategies, they not only diversify into gold and foreign currency, but also closely monitor the maturation of digital assets in terms of structure and function.
Bitcoin remains primarily speculative in the sovereign reserve context. Still, its growing institutional footprint and increased regulatory clarity suggests that it may lay the foundation for future considerations.
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