A Research Paper Published By Harvard University Provides Strong Support To Bitcoin

Harvard University has recently published a research paper that is about the adoption of Bitcoin (BTC) by the central banks.

The research paper provides insights into how central banks can use Bitcoin to their benefit. Bitcoin can become the perfect hedge fund when it comes to dealing with sanctions.

The sanctions addressed by Harvard University in the research paper are the ones imposed by the issuers of the fiat reserve.

Matthew Ferranti’s Research Paper

The research paper has been published by a Ph.D. candidate from Harvard University. The researcher’s name is Matthew Ferranti, he is from the economics department.

He reportedly carried out his study on Bitcoin, trying to establish what role the largest crypto can play as a hedge.

The research has confirmed that the BTC can be the perfect alternative to traditional hedge funds. The central banks can adopt Bitcoin and then use it as a hedge to fight off the sanctions they may face.

BTC is Easy to Handle

He added that the central banks can hold a small amount of BTC even under normal circumstances. BTC has a lot of potentials to offer in this particular situation and can help in circumvention.

However, when there are high chances and risks of sanctions growing aggressive, that is when the central banks can go all out in the acquisition of Bitcoins.

They can acquire a large quantity of Bitcoin, which may be equal to the number of gold reserves they hold.

Sanctioned Countries are Adopting Bitcoin

Ferranti did refer to the countries that are already facing several sanctions from the United States and its allies, who are interested to adopt Bitcoin.

He talked about countries such as Venezuela, Cuba, Russia, Iran, and even El Salvador. Apart from El Salvador, the rest of the countries are sanctioned by the United States.

Venezuela has already announced that they want to make Bitcoin a legal currency. The country has already used it to pay off international loans.

Cuba and Russia are working together to come up with a platform to process cross-border transactions that may use Bitcoin and the digital rouble.

Iran is also mining Bitcoin on a large scale and has legalized mining activities of Bitcoin in the country.

El Salvador has already legalized Bitcoin in the country and it is improving its economy with the adoption of the largest crypto.

It is only a matter of time before other countries will realize the importance of adopting Bitcoin as a hedge. With more countries and central banks adopting Bitcoin, the value of the asset would continue to rise.

This is because the more BTC is held by the firms and central banks, the more strength and security the asset would get.

At the time of writing, Bitcoin’s trading price is worth $16,736.79 and it has surged by 1.59% in the past 24 hours. Even in the past 7-days, BTC’s trading price has surged by 0.78%.