Harvard Expert: Central Banks Can Use BTC to Protect Against Economic Restrictions from Issuers of Reserve Currencies

Matthew Ferranti, Ph.D. in Economics (Harvard University), has concluded after conducting a study that central banks can use Bitcoin to protect against economic restrictions from issuers of reserve currencies.

He has calculated that over the past few years, countries at higher risk of US sanctions have increased the share of gold in their reserves compared to countries whose probability of being subject to restrictions is lower.

Ferranti has noted the potential of BTC as an alternative hedge if the central bank cannot acquire enough of the precious metal. He has added:

“Cryptocurrencies offer some protection from sanctions but introduce the risk of high volatility.”

He has also admitted that even without the threat of economic measures, it is reasonable for banks to hold Bitcoin along with gold.