09.07.202115:06 Forex Analysis & Reviews: Central bank reserve managers are ready to consider bitcoin as an alternative to gold

While bitcoin is slowly and steadily declining within the corridor of 31,082.82 - 41,980.24, while working out the forecast, let's look at how the perception of cryptocurrencies in the world is changing. Incoming news suggests that, even in central banks, attitudes are slowly but surely warming.

A UBS survey found that the number of central bank reserve managers who prefer cryptocurrency investments is still quite low. However, it is gradually increasing, and 11% of respondents in a recent survey said they could consider cryptocurrencies like bitcoin as an alternative to gold. The survey, which was conducted in April and June this year, involved 30 central banks.

46% of reserve managers said they do not believe central bank digital currencies will replace cryptocurrencies such as bitcoin and believe that both will exist in parallel.

83% of respondents said central banks would be interested in investing in cryptocurrencies such as bitcoin to learn about them as a new asset class, investment process, and investment management.

Over 20% of those surveyed noted that the investment potential of private cryptocurrencies, such as bitcoin, is not associated with investments in other assets. For these managers, the alternative will be central bank digital currencies. The survey showed that most Central Banks and their reserve managers are extremely positive about these types of cryptocurrencies.

The majority of respondents prefer central bank digital currencies as a way to update traditional payment and financial infrastructures such as clearing and settlement. They also intend to use them to reduce crime and money laundering, as well as to contain the extreme volatility that bitcoin and altcoins have.

UBS notes that 60% of those surveyed said they expect G7-led central banks to provide central bank digital currencies directly to customers over the next 50 years. And 80% of them said that "wholesale" central bank coins intended for use by large institutions would be issued during the same period.

Note that these central bank digital currencies (CBDCs) are currently under development. It is still unclear exactly how they will look. At the same time, it seems that the motive for their release is opposition to bitcoin and other private cryptocurrencies.

Experts point out that in fact, central banks' concern about the lack of control over private coins explains their increased interest in the development of CBDC. A recent study by the Bank for International Settlements (BIS) found that 80% of central banks study CBDC at one level or another.

As for bitcoin, the forecast of a possible reversal upwards from the support of the sideways trend at 31,082.82 - 41,980.24 or the level of 28,392.99 remains relevant. I do not exclude a true breakdown of these boundaries with a consolidation below, but this will require a strong news driver.