Odaily Planet Daily News Recently, the Bitcoin Policy Institute published a paper titled (The Case for Bitcoin as a Reserve Asset). The article argues that central banks should adopt Bitcoin as a reserve asset to hedge against rising inflation, geopolitical risks, capital control risks, sovereign defaults, bank failures, and international sanctions imposed by the US government. The paper's author, economist Matthew Ferranti, stated that due to the weak correlation of Bitcoin, a decentralized asset, with other financial instruments, it is an 'effective portfolio diversification tool.' Ferranti also emphasized that Bitcoin has no counterparty risk, making it an effective hedge against sovereign defaults (including financial sanction risks). He clarified that while Bitcoin and gold allocations may not be the choice for every central bank, this emerging digital asset has the same value storage and hedging properties as gold, especially in situations of rapid currency devaluation. (Cointelegraph)

#BTC