Matt Hougan: By 2050, Bitcoin Will Be a Required Asset for Central Banks Worldwide

▲ Bitcoin (BTC)/ChatGPT-generated image

A bold prediction has emerged that Bitcoin (BTC) will eventually become a mandatory reserve asset for all central banks around the world.

According to cryptocurrency media outlet U.Today on February 24 (local time), Matt Hougan, Chief Investment Officer of digital asset manager Bitwise Invest, forecast that by 2050 every central bank globally will hold Bitcoin. Hougan emphasized that Bitcoin will play a role similar to gold in the global financial system and establish itself as a strategic national asset. “It is only a matter of time before central banks adopt Bitcoin to diversify their asset portfolios and prepare for the digital economy era,” he said.

Hougan analyzed that Bitcoin’s scarcity and decentralized nature are increasingly being recognized by central banks as attractive stores of value. While only a few countries are in the early stages of adopting Bitcoin, he explained that from a long-term perspective toward 2050, Bitcoin is likely to become a core component of global reserve assets. This shift is interpreted as evidence that Bitcoin is moving beyond a mere speculative instrument and entering the heart of institutional finance.

Central bank holdings of Bitcoin are expected to spark a race among nations to secure digital assets and serve as a catalyst for a significant rise in Bitcoin’s value. Hougan projected that just as central banks historically stockpiled gold to defend their currencies, Bitcoin will either replace or complement that role in the future. In particular, as changes in dollar hegemony and growing global macroeconomic uncertainty intensify, demand for Bitcoin from central banks is likely to accelerate further.

The accelerating inflow of institutional capital through spot Bitcoin ETFs also serves as a key signal supporting this long-term outlook. Hougan assessed that as Bitcoin gradually reduces its volatility and matures into a more stable asset, even conservative central banks will find it difficult to ignore. If national institutions begin to participate in the market in earnest following large institutional investors, the Bitcoin ecosystem is expected to expand to an unprecedented level.

In the long term, Bitcoin appears to be solidifying its position as an essential part of global financial infrastructure while gaining the trust of central banks. Hougan’s 2050 scenario signals an elevation of Bitcoin to the highest stage in its monetary evolution—becoming a sovereign reserve asset. Financial authorities worldwide are closely watching the shifting role of Bitcoin as the rise of digital assets reshapes the global monetary order.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses arising from it. The content should be interpreted for informational purposes only.