According to a paper published at Harvard University, central banks should buy BTCUSD, as a hedge against sanctions by other countries.
Ph. wrote a paper titled Hedging Sanctions Risk: Cryptocurrency in Central Bank Reserves. D. candidate Matthew Ferranti, from Harvard's economics department, likens central banks gold reserves to potential bitcoin holdings.
Ferranti points out that central banks in countries across the globe should look into holdingBitcoin as a hedge against possible financial sanctions. After its invasion of Ukraine, he gives an example of the unprecedented financial sanctions levied against Russia by the U.S. and many western nations — billions of Russian assets were frozen after the Ukraine war began.
Sanctions risk may diminish the appeal of U.S. Treasuries, boost broader diversification in central bank reserves and bolster the long-run fundamental value of both cryptocurrencies and gold, according to Ferranti.
Ferranti says that El Salvadoran is a model for central banks owningbitcoin. The country that is headed by Nayib Bukele has millions of dollars worth of the digital currency and has even made bitcoin an official national currency.
We just bought the dip El Salvador expands its holdings ofBitcoin.
Part of the appeal of popularcryptocurrencies likeBitcoin and ether ETHUSD has been the lack of involvement from central banks, in favor of the decentralization nature of the digital asset.
In the wake of the recent crypto winter and collapse of the popular FTX, as well as financial issues for Voyager and Celsius, some crypto bulls have called for more regulation and transparency for the industry.
The paper came after FTX struggled with liquidity issues in November, leading to a bankruptcy filing. Sam Bankman- Fried resigned as CEO and later apologized for the collapse of his former company.
Charlie Munger says it is partly fraud and partly delusion.
Tom Brady, Steph Curry and Kevin O Leary are all set to lose big from the bankruptcy filing of FTX.
The price of ether has fallen over 70% over the past year, and the price for ether is down over 70% over the same period. The total market cap for all cryptocurrencies was nearly $3 trillion during parts of 2021, but is now around $800 billion.