Odaily News The Bitcoin Policy Institute recently published a paper titled "The Case for Bitcoin as a Reserve Asset." The article argues that central banks should adopt Bitcoin as a reserve asset to hedge against rising inflation, geopolitical risks, capital control risks, sovereign defaults, bank failures, and international sanctions imposed by the U.S. government. The author of the paper, economist Matthew Ferranti, said that Bitcoin is an "effective portfolio diversification tool" because the decentralized asset has a weak correlation with other financial instruments. Ferranti also emphasized that Bitcoin has no counterparty risk and can therefore effectively hedge against sovereign defaults (including financial sanctions risks). He clarified that Bitcoin and gold allocation may not be an option for every central bank, however, this emerging digital asset has the same value storage and hedging properties as gold, especially in the case of rapid currency depreciation. (Cointelegraph)