CBDCs, Stablecoins, and Bitcoin: The Noise vs. Reality
You’ve probably heard all about CBDCs (Central Bank Digital Currencies). Social media is buzzing, and depending on who you listen to, you’re told it’s either revolutionary or dangerous.
Then there’s the hype around stablecoins and speculation that the U.S. government could build a bitcoin reserve. Add to that the narrative of how central banks worldwide might do the same.
Of course, El Salvador’s bitcoin experiment is often cited as a success story—though the details aren’t always clear.
But while the spotlight shines on digital currencies, a quieter but more powerful trend is underway: central banks buying gold.
It sounds like a hyperbole, but it’s feeling like central banks are addicted to gold.
Central Banks Are Buying Gold Like Never Before
It’s not the Federal Reserve or the European Central Bank leading the charge. Instead, smaller central banks around the world are quietly loading up on gold reserves.
This trend began after the 2008–2009 financial crisis, and since 2010, central banks have been net buyers of gold every single year.
- In 2024, central banks added 1,045 tonnes of gold—the 15th consecutive year of buying (Source: World Gold Council)
- In 2022, they bought 1,080 tonnes.
- In 2023, another 1,050 tonnes.
- In the first half of 2025, they added 415 tonnes—a slower pace, but still meaningful. (Source: World Gold Council)
Their message is clear: they are willing to buy gold at any cost.
Their actions are speaking louder than words; they want/willing to buy more gold…at whatever cost.
Are Central Banks Trading Gold for Profits?
Not at all. Central banks are not traders. Their mandate is usually price stability, not speculation.
If they only wanted to chase price appreciation, wouldn’t it make more sense to buy bitcoin instead?
And when it comes to selling, activity is minimal. In Q2 2025, Singapore, Uzbekistan, and Germany’s Bundesbank sold just nine tonnes combined. Compare that to the hundreds of tonnes purchased, and you see the imbalance.
The Evidence Points to More Buying Ahead
Fifteen straight years of gold buying is not a fluke—it’s a mature trend. And if the latest World Gold Council Central Bank Gold Reserves Survey (2025) is any indication, it’s likely to continue. (Source: World Gold Council)
- 95% of central banks surveyed believe global gold reserves will increase in the next 12 months.
- 43% of respondents (a record high) believe their own gold reserves will rise.
- Not a single central bank expects to reduce gold holdings.
That’s as close to a consensus as you’ll ever see in finance.
What Do Central Banks Know That We Don’t?
This is the big question. Why are central banks buying so much gold instead of rushing into crypto?
The answer may be simple: gold is tangible. It’s an asset they can hold, touch, and audit (maybe 😉). In contrast, crypto ownership raises questions of custody, security, and regulatory risk.
Gold provides an anchor for reserves, and central banks clearly value that stability.
What This Means for Investors
Imagine an elephant trying to sneak into a swimming pool—the water is going to spill over. Central banks’ buying is that elephant, and the “spillover” could be higher gold prices.
Will gold double or triple within a year? Probably not, unless we see hyperinflation or a currency collapse. But it doesn’t need to. Gold’s role has always been preservation of value, not speculation for Lambos and Instagram flexes.
Add to these the tight supply dynamics in the gold market (a topic for another day), and the case for holding some gold becomes stronger.
Final Thoughts
Central banks are quietly showing us where they see long-term value. Investors would be wise to take note.
If you enjoyed this analysis, head over to the “Trade Ideas” page on ZulfiqarResearch.com, where I’ll be sharing deep-dive investment ideas you won’t find in the mainstream financial press.