The demand for gold like a global reserve currency has risen in the past year. The BRICS countries, led by China and Russia, have collected more gold for their reserves in the midst of their constant urge for dedollarization.
Gold has gradually increased its share as a global reserve currency, with the share rising by 3% in the first quarter of 2025 to around 24%, the highest in 30 years. In the meantime, the US dollar fell its share as the global reserve currency by 2% during the 1st quarter from 2025 to around 42%, the lowest since the 1990s.
Meanwhile, gold surpassed The euro in 2024 to become the second largest global spare active. The Dam and for gold as a global reserve currency has been reinforced by continuous digitization, especially in blockchain technology. According to Coingecko market data, Tokenized Gold has a rating of approximately $ 2.59 billion and an average trade volume of 24 hours of around $ 492 million, led by Tether Gold (Xaut) and Pax Gold (PAXG).
Why Bitcoin Gold will follow as an alternative global reserve currency
The mainstream acceptance of Bitcoin by institutional investors, retail traders and nation statements has contributed to increasing its market value. The chairman of the Federal Reserve Jerome Powell has previously admitted that Bitcoin Digital Gold is using it to cover themselves against global inflation.
Last week, JPMorgan -analysts emphasized that Bitcoin is undervalued in relation to gold. The regular bank set an interim target of approximately $ 126k for the BTC price, which will be fed by companies that implement strategic BTC reserves.
With more nation states that the United States is expected to follow in the implementation of strategic bitcoin reserves, the share of assets will grow organically as a global reserve currency. Moreover, Bitcoin is much scarce than gold and is more useful from practice than the precious metal, especially when facilitating payments.