<ul><li>According to a recent paper from the Bitcoin Policy Institute, central banks should adopt Bitcoin as a reserve asset.</li><li>The paper argues that Bitcoin can serve as a hedge against inflation, geopolitical risks, capital control risks, sovereign default, bank failures, and international sanctions imposed by the US government.</li><li>The economist argues that Bitcoin's weak correlation with other financial instruments makes it an effective portfolio diversifier.</li><li>Furthermore, Bitcoin's lack of counter-party risk makes it a valuable hedge against sovereign defaults and financial sanctions.</li></ul>

‘The Case for Bitcoin as a Reserve Asset’ — Bitcoin Policy Institute

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