Harvard Scholar Urges Central Banks to Begin Purchasing Bitcoin
A Harvard economics researcher has issued a new working paper urging central banks throughout the globe to begin purchasing Bitcoin.
According to Politico, Matthew Ferranti, a fifth-year PhD candidate in the economics department at Harvard, has produced a new working paper advocating that central banks should begin purchasing Bitcoin.
The report, supervised by Ferranti’s Harvard adviser and former IMF economist Ken Rogoff, asserts that central banks might gain from owning a tiny amount of Bitcoin. According to the report, nations facing sanctions or the possibility of economic penalties should keep more Bitcoin as a hedging alternative to gold.
In an interview with Politico, Ferranti emphasized that governments may utilize crypto to circumvent U.S. and other global powers’ sanctions.
Nevertheless, he claimed that gold was the most excellent alternative hedge, stating: [Gold is] somewhat less volatile. It’s like five times less volatile.
Countries would profit from having crypto in addition to gold owing to the absence of a connection between the two assets and to boost diversification, according to Ferranti. In addition, he stated that nations under danger of sanctions tend to have inadequate infrastructure and are consequently less likely to be able to acquire sufficient gold to appropriately hedge their risk.