Why Bitcoin Belongs in National Reserves but Won’t Replace the Dollar Anytime Soon

Bitcoin has emerged as a compelling addition to national reserves, offering diversification benefits at a time of rising geopolitical risk and weakening trust in traditional debt markets.

Countries like the Philippines are exploring Bitcoin holdings, while El Salvador has already built a sizable treasury. Yet despite its momentum, Bitcoin lacks the liquidity, stability, and deep market structure of U.S. Treasuries or gold, preventing it from serving as the world’s reserve currency in the near term. With volatility often exceeding 50% annually and limited institutional participation compared to bond markets, Bitcoin cannot yet anchor global financial stability.

Still, its independence from sovereign risk, similarities to gold, and growing institutional adoption through ETFs and regulatory clarity suggest it will play a larger complementary role in reserve portfolios. Rather than dethroning the dollar, Bitcoin is on track to become a modern hedge asset within official reserves, bridging traditional finance with the digital economy.

Clever Robot News Desk 9^th September 2025