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Holding cryptocurrencies in central bank reserves as a hedge against sanctions risk: Report

2022/11/23 05:35

According to Politico, Harvard professor Matthew Ferranti recently published a paper titled "Hedging Sanctions Risk: "Cryptocurrencies in Central Bank Reserves, said it makes sense for many central banks to hold small amounts of bitcoin under normal circumstances and more if they face sanctions risk, though his analysis found gold to be a more useful sanctions hedge. Ferranti concluded that sanctions risk may diminish the appeal of US Treasuries, propel broader diversification in central bank reserves, and bolster the long-run fundamental value of both cryptocurrency and gold.
Former MicroStrategy CEO Michael Saylor commented on Twitter that academics are starting to realize the benefits of Bitcoin as a reserve asset for the nation's finances.
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