Harvard Document Advises Central Banks to Buy Bitcoin

English Dec 1, 2022

Bitcoin was invented to be an alternative to banking, yet Harvard academics believe that the largest cryptocurrency could play an important role with traditional financial institutions.

Since Western governments froze Russia's foreign exchange reserves earlier this year, speculation has arisen that some central banks will acquire cryptocurrency as a way to hedge against financial blockades by the US and its allies.

Since then the idea has stuck with bitcoin investors, who tend not to support US foreign policy and who see it as a good thing that cryptocurrency can provide an alternative solution.

Bitcoiners' hopes often revolve around the Gulf states, with their huge cash reserves and troubled relationships with the West.

Recently, a paper on the subject written by Matthew Ferranti - a fifth-year Ph. economist at the IMF and the Board of Governors of the Federal Reserve, who is now a professor at Harvard - brought more weight to the subject.

In the document, Matthew states that it makes sense for many central banks to acquire a small amount of bitcoin under normal circumstances, and much more bitcoin if they face sanctions risks.  I imagine the same goes for normal people, if your country has a strong currency, maybe accumulating a small amount is enough, while those who live in politically unstable countries certainly make sense to get even more Bitcoin.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.