Deutsche Bank has commented on the proposed U.S. Bitcoin reserve, highlighting the potential benefits of such a move. The bank's research report suggests that Bitcoin could play a major role in the United States' financial strategy as a strategic reserve asset. It emphasizes Bitcoin's fixed supply, decentralization, and strong security track record, comparing it to gold in terms of scarcity and resilience. Deutsche Bank also cites concerns over inflation and dollar depreciation, stating that a U.S. Bitcoin reserve could help hedge against inflation and benefit the U.S. dollar. Additionally, the bank argues that holding Bitcoin as a reserve asset makes sense from a diversification perspective due to its low correlation with other assets. The report confirms increasing institutional interest in Bitcoin as governments and asset managers seek non-traditional hedges. The bank also highlights that with Bitcoin's price appreciation, holding it as a reserve asset could bolster public finances and offset national debt. Bitwise CIO Matt Hougan believes the reserve reduces the likelihood of the U.S. banning Bitcoin and could prompt other countries to establish their own reserves, accelerating global Bitcoin adoption. Hougan also argues that the reserve makes it harder for financial institutions to label Bitcoin as unsuitable.



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