Reduced number of central banks contemplating digital asset investments within the next 5 to 10 years.
Central banks' interest in digital currencies appears to have increased or at least intensified, according to recent findings. While there is a cautious and evolving stance towards cryptocurrencies, institutional and governmental involvement in the digital asset space is on the rise.
A 2025 SSRN report indicates that China, for instance, continues to prohibit private cryptocurrencies but has accelerated investment in its own central bank digital currency (CBDC). This trend of central banks developing CBDCs and engaging in related technological and regulatory initiatives is consistent with the changing interest landscape.
Broader institutional investor interest in digital assets, from 2024 onwards, shows sustained momentum, with over 70% of institutional investors planning digital asset investments. While this does not directly confirm central banks investing in cryptocurrencies as a reserve or portfolio asset, it does suggest a rising professional and potentially official interest in the crypto space overall.
Bitcoin and other cryptocurrencies’ soaring valuations and their institutional adoption phase since 2020 imply increasing overlap between institutional financial flows and crypto markets. However, no central banks currently consider bitcoin an appropriate investment class. In the 2021 survey, 15.9% of central bank respondents said they would consider investing in digital assets or currencies within five to ten years.
The risk of US protectionist policies has transpired a little sooner and larger than anticipated, according to the survey. A significant number (33, or 39.3%) of central banks were unsure about a bitcoin strategic reserve, while only one central bank was supportive of the idea. 50 central banks (59.5%) were against the idea of a bitcoin strategic reserve.
Interestingly, the latest round of US tariffs was not considered in the survey. The survey was conducted in January and February, before Trump’s March executive order regarding the creation of a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile.
In the 2021 survey, 11.6% of central banks said cryptocurrencies are becoming a more credible investment. However, 91 central banks managing more than $7 trillion in reserves do not currently have digital asset investments.
In conclusion, central banks' interest has shifted towards developing CBDCs and digital currency frameworks while being cautious or prohibitive about private cryptocurrencies. Institutional investment in digital assets including cryptos has grown robustly, but direct investment by central banks remains limited. The recent Central Banking surveys and reports therefore suggest a nuanced but increased engagement, especially on the digital currency innovation side rather than direct crypto asset investment.
- Despite the growing interest in digital currencies among central banks, direct investment in cryptocurrencies as a reserve or portfolio asset by these institutions remains limited.
- The trend of central banks developing central bank digital currencies (CBDCs) and engaging in related technological and regulatory initiatives signifies a shift in their interest landscape, while their stance towards private cryptocurrencies remains cautious.
- Institutional investors, on the other hand, show sustained momentum in their interest in digital assets, with over 70% planning digital asset investments, indicating a rising professional and potentially official interest in the crypto space overall.
