Cypher
(BTC) Bitcoin News TodayAltcoinBlockchainCryptocurrencyNews

Central Banks Can Use BTC To Evade Sanctions – Harvard Research

A Havard Research paper has suggested that central banks consider adding Bitcoin to their reserves. According to the research paper, Bitcoin can help central banks circumvent sanctions.

Matthew Ferranti, a Havard Ph.D. student in the department of economics, released a research paper recently. According to the report, BTC is an alternative asset that can hedge against risks.

Additionally, the researcher noted that central banks with large Bitcoin reserves could mitigate the effect of financial sanctions from foreign entities. Furthermore, the research highlighted why central banks should have a BTC reserve.

Ferranti suggested that it would be beneficial for central banks to have a small amount of BTC reserves under typical conditions. However, he believes it would be better if central banks had larger Bitcoin reserves.

Cypher

According to him, such reserves would be beneficial if sanctions arise. The PhD student noted that the Bitcoin reserve would augment the central bank’s gold reserves.

The study also highlighted that nations at a higher risk of facing US sanctions are stocking their gold reserves. Countries that have lower chances of receiving sanctions have little gold reserves.

According to the study, Bitcoin reserves are a good alternative for central banks. This is because of how difficult it is to buy gold. Bitcoin reserves can also counter the risks associated with several sanctions.

📰 Also read:  FidelityCorp Review – Is Fidelity Corp Scam or Legit? (Complete FidelityCorp.co review)

In addition, the researcher argued that the possibility of penalties could be good. It would stimulate central banks to take steps towards diversifying their reserves.

The researcher advised that central banks can consider adding Bitcoin to their reserves. Ferranti concluded that there are considerable advantages if banks diversify their reserves and invest in gold and Bitcoin.

Increase In Self-Custody Shows Reduction In Sell Pressure – Bofa

Meanwhile, Digital strategists at the BofA (Bank of America) stated that the correlation between gold and Bitcoin had increased recently. This shows that investors now have more confidence in Bitcoin despite the economic meltdown.

Furthermore, the strategists noted that the increase in self-custody of crypto assets shows that sell pressure has reduced among investors. Usually, users have to move their digital assets to exchange platforms before they can sell them.

However, storing these digital assets in a cold wallet means that users do not intend to sell them. Moreover, self-custody for digital assets is gaining broader attention in the crypto industry.

📰 Also read:  EasyMarkets Review – Is Easy Markets Scam or Legit? (Complete easymarkets.com review)

This came after the FTX crypto exchange implosion, where FTX users lost their funds. However, certain crypto community members argue that self-custody also has its own risks.

One of them includes loss of funds due to bugs within smart contracts. Another problem is that loved ones can’t access the holder’s crypto assets after death.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  Bitcoin ETFs: Blackrock Submits Application For Its Global Allocation Fund

Cypher

Bradley Nelson

Bradley Nelson is a US based cryptocurrency news writer for Tokenhell, he helps readers stay up to date with the latest trends and news from the blockchain and crypto world. Bradley has been a crypto enthusiast since 2018.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content