Economist Highlights Bitcoin’s Potential Role in Central Bank Reserves

Economist Matthew Ferranti, in a recent paper by the Bitcoin Policy Institute, argues that Bitcoin could serve as a valuable reserve asset for central banks, much like gold.

Ferranti highlights Bitcoin’s crisis resilience, inflation-hedging capabilities, and potential benefits amid sanctions and global tensions. Although El Salvador is the only country currently holding Bitcoin as a reserve, Ferranti suggests other nations may be exploring this quietly.

While noting that Bitcoin may not suit every central bank’s needs, he contends its robust design and limited supply make it worth considering for risk diversification alongside traditional assets like gold.

Clever Robot News Desk 29^th October 2024