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Harvard paper to central banks: Purchase Bitcoin!

After Western governments froze Russia’s international change reserves early this 12 months, hypothesis mounted that some central banks would purchase cryptocurrency as a type of insurance coverage towards monetary blockades from the U.S. and its allies.

**Bitcoiners’ hopes usually revolve across the Gulf states,** with their large money reserves and often-fraught relationships with the West. In August, a [Twitter account](https://twitter.com/roberto_saudi/standing/1574410309015576576) impressed by the chance, Sheikh Roberto, sprouted as much as promote Bitcoin utilization and slam the Fed in posts from El Salvador.

There’s an enormous literature on how efficient sanctions are. And I believe the quantity that comes out of that is sort of a third of the time they work. In fact, they will have unintended penalties, like hurting the inhabitants of the nation that you just’re sanctioning.

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Edit: [https://sites.google.com/view/matthewferranti/research?pli=1](https://websites.google.com/view/matthewferranti/analysis?pli=1)

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16 thoughts on “Harvard paper to central banks: Purchase Bitcoin!”

  1. It is a double edged sword in my opinion if Russia and other critical governments invest in Bitcoin to use it as a mean for international trade, because on the one side it brings demand for Bitcoin but on the other side it brings a new attack vector for western governments to regulate Bitcoin even more.

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  2. I will play devils advocate. How many bitcoins have the USA accumulated over the years? Last I checked it was over 1% of the total supply.

    Now the USA use oil as a weapon so what would be stopping the USA using it’s BTC for manipulation? If a nation it wanted sanctions adopted BTC fully it could simply tank the price and rebuy.

    Crypto isn’t the answer here for those nations the only insurance would be if said Nations adopted CBDCs to get around sanctions.

    Countries that are ex bloc don’t even require this as they will funnel money via the stans for example or Belarus or use commodities, but it would make things easier.

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  3. I’m all for it, don’t get me wrong, but I don’t think we should get excited about this until he successfully publishes it in a peer reviewed academic journal. Right now it’s literally just a google doc on his personal website. This is only one step above saying “trust me bro”.

    Reply

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