China May Replace US Treasuries With Gold and Bitcoin

BlackRock warns that China could shift reserves from US Treasuries to gold and Bitcoin as geopolitical tensions rise and demand for safe-haven assets grows.

Central Banks Accelerate Diversification Amid Global Uncertainty

Jay Jacobs from BlackRock suggested that China may reduce its reliance on US debt. In a CNBC interview, he explained that central banks are turning to gold and Bitcoin due to geopolitical risks.

This diversification trend began three to four years ago but has recently intensified. Nations are moving away from dollar-based reserves toward alternative stores of value.

Bitcoin Gains Status as a Safe-Haven Asset Like Gold

Jacobs highlighted concerns after $300 billion of Russian reserves were frozen. Such events encourage countries like China to rethink reserve strategies.

BlackRock sees geopolitical fragmentation shaping markets for decades. This environment boosts interest in uncorrelated assets like Bitcoin and gold.

“We’ve seen strong inflows into gold and Bitcoin ETFs,” Jacobs said, noting investors seek assets that behave differently during global crises.