Bitcoin's Whereabouts Remain Elusive as Gold Outpaces Euro Reserve's Growth, According to Peter Schiff
Gold Soars Past Euro as Second-Largest Reserve Asset
Step aside euros, gold has landed a significant blow and become the second-biggest reserve asset, sitting pretty behind the mighty U.S. dollar. According to the recent European Central Bank (ECB) report, gold composes around 20% of central bank reserves by the end of 2024, in contrast to the euro's 16%. This seismic shift can be attributed to all-time high gold prices and historic central bank buying sprees.
Gold enthusiasts, especially the one and only Peter Schiff, can't help but notice this stern shift. He playfully mocked Bitcoin with the question, "Where's Bitcoin?" It's a fair point, considering Bitcoin's impressive investor following and growing presence in various financial products, yet it remains a no-show in central bank reserves.
Schiff, the CEO of Euro Pacific Asset Management, has always maintained that Bitcoin is worth less than a hill of beans, an air bubble if you will. He's well-known for comparing Bitcoin to gold—his top contender for the ultimate store of value. In one of his public statements, he asserted, "I don't fancy Bitcoin as digital gold."
Gold Fever: The New Normal?
Gold prices experienced a meteoric rise of nearly 62% in 2024, topping out at a whopping $3,509.90 per ounce in April. The surge was fueled by escalating global tensions, inflation jitters, and widespread mistrust towards fiat currencies, causing central banks to stockpile gold like never before.
With China, Turkey, India, Poland, and Azerbaijan sitting on massive gold reserves, central banks piled on more than 1,000 metric tons of gold to their stashes last year—making it the third consecutive year of aggressive buying.
Bitcoin's Reluctant Entrance into Central Bank Vaults
At present, no major power is stashing Bitcoin in their vaults, according to the International Monetary Fund (IMF). El Salvador earns the exception. They legalized Bitcoin as legal tender in 2021 and have quietly been adding BTC to their national treasury, accounting for approximately 6,100 BTC as of March 2025.
However, El Salvador's dedication to Bitcoin isn't unwavering. The country smoothly rolled back mandatory Bitcoin acceptance earlier in 2025 due to conditions set by the IMF for a $1.4 billion loan agreement. Despite this change in policy, the government remains committed to Bitcoin by continuing to purchase and hold it, with reserves steadily growing.
In early 2024, U.S lawmakers introduced the 'Bitcoin Reserve Bill,' proposing the exploration of whether Bitcoin could serve as a strategic reserve asset like gold. Although the bill hasn't made much progress in Congress, it's a promising sign that influential figures are starting to take Bitcoin more seriously.
So, while Bitcoin has shaken up the finance world with its impact and adoption, it's yet to make a breakthrough in the central banking scene like gold or even the U.S dollar and Euro has.
Also Read: Bitcoin ETFs Tally $9B Inflows, Outpace Gold: Schiff Silent?
While Bitcoin struggles to find a foothold in central banks, countries like Brazil are aggressively considering a 5% reserve allocation for Bitcoin. The U.S. has also set up the Strategic Bitcoin Reserve, and El Salvador serves as a model for Bitcoin adoption. These moves could shape the future of central bank reserves, promoting innovation, and resilience while ushering in a new era for global economic policies.
- Despite Bitcoin's strong presence in the investing world and various financial products, it remains absent from central bank reserves, unlike gold.
- Amid growing interest in cryptocurrencies, the United States has established the Strategic Bitcoin Reserve, indicating a potential shift in global economic policies.
- Countries like Brazil are exploring the idea of allocating 5% of their central bank reserves to Bitcoin, suggesting an increasing integration of technology and finance, symbolized by cryptocurrencies, into mainstream business and entertainment.
