TechFlow news, October 27 — According to Cointelegraph, the Bitcoin Policy Institute released a landmark research report titled "The Case for Bitcoin as a Reserve Asset." The report reveals that as of the first quarter of 2024, global central banks held gold reserves valued at $2.2 trillion, with continued expansion in gold allocation.
The report's author, economist Matthew Ferranti, argues that central banks should include Bitcoin in their reserve asset portfolios to hedge against multiple risks, including inflation, geopolitical conflicts, capital controls, sovereign debt defaults, banking system crises, and international sanctions imposed by the U.S. government. Ferranti emphasizes that Bitcoin, as a decentralized asset, has low correlation with other financial instruments, making it an ideal tool for portfolio diversification.
In terms of risk management, the report highlights that Bitcoin carries no counterparty risk and can effectively hedge against sovereign default risks, including financial sanctions faced by countries such as Venezuela and Russia. While Bitcoin and gold allocations may not suit every central bank, Bitcoin possesses the same store-of-value and hedging properties as gold when应对 rapid currency depreciation.
