The American macroeconomist believes that as soon as sovereign wealth funds pay attention to bitcoin, the Central Bank will soon become interested in it.
Investment strategist Lyn Alden, in an interview with Peter McCormack on What Bitcoin, said that the current geopolitical tensions in the world may cause some states to start taking bitcoin more seriously:
“Theoretically, this increases the demand for reserves that cannot be blocked. Primarily gold, as it is liquid, less volatile, and already owned by central banks with a total estimated market capitalization of around $12 trillion. The longer you look to the future, the more attractive bitcoin becomes as a reserve asset.”
Alden added that sovereign wealth funds, with a higher risk appetite than central banks, will be the first to hoard BTC. With more players in the market, huge liquidity and less volatility, Alden argues, the stage could be set for central banks eyeing the flagship crypto asset.
“By their nature, central bank reserves should be very conservative, either in currency or gold. While sovereign wealth funds can buy assets such as stocks. Some central banks also buy shares, but most often these are shares of state funds, ”the economist said.
Alden added that the more bitcoin spreads, the more liquidity it has. This means that the more often central banks will consider it as a viable mutual reserve asset. Firstly, it cannot be blocked by a third party unilaterally, and secondly, with the help of bitcoin, you can bypass sanctions and carry out international transactions.
Analysts of the financial company Deloitte are also of the opinion that the Central Bank will use bitcoin. They argue that BTC can become a benchmark for the global development of central banks’ own digital currencies. Last week, the FBI emphasized that the US has vast experience in tracking cryptocurrencies, and Russia will not be able to use them to circumvent sanctions. The Senator from Massachusetts is going to submit a bill to Congress blocking the ability to fight anti-Russian sanctions with the help of crypto assets.
Source: Bits
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