Chinese Think Tank describes Bitcoin as a strategic reserve currency
A new analysis of the Chinese International Monetary Institute (IMI) suggests that Bitcoin is getting silent and quiet as a serious player in the global reserve system.
According to the state -supported research group, cryptocurrency begins to develop from a speculative asset to an instrument of strategic importance for central banks and state institutions.
The IMI report argues that the growing fiscal pressure in the United States-such as rising deficits, extremely relaxed monetary policy and falling real yields on government bonds-forces central banks to check alternative reserve strategies. Traditionally, gold was the safe harbor, but the report emphasizes the limited quantity and the decentralized structure of Bitcoin as an increasingly attractive characteristics for long -term reserve allocation.
The report even refers to indirect engagements of national institutions and mentions the Norwegian state fund, which is engaged by its investments in Bitcoin. While most central banks still avoid direct BTC stocks, IMI sees such cases as the first sign of a change in financial policy at the highest level.
For countries that have to deal with inflation or currency devaluation, in particular emerging countries, Bitcoin could offer protection against monetary instability, the report. In view of the dwindling global trust in the US dollar, the IMI assumes that Bitcoin will become more important as a “strategic reserve currency” in the coming years.
