Bitcoin: Central banks around the world will hold BTC as reserve assets
- Central banks are becoming more receptive and may start accepting BTC as a reserve asset.
- IBTC investor Yusko believes bitcoin will replace gold as a reserve of banks.
Veteran investor and hedge fund manager Mark Yusko is bullish on Bitcoin. According to the Morgan Creek Capital CEO, the world’s central banks will officially recognize Bitcoin as a reserve asset as debt continues to pile up.
Speaking in a recent Stansberry Research interview, Yusko says that over time central banks have become less restrictive with regard to the choice of reserve assets. He said:
“What’s going to happen is that central banks used to only hold gold. Then they had gold and dollars, and then yen and euros. Now they have some renminbi, [and]eventually they’re going to have some Bitcoin… They’re going to have some Bitcoin, and eventually Bitcoin will beat gold.”
Yusko believes this will happen because the dollar is not strong and is not enough to support the US debt. He says the only way for “an empire that is far too indebted” to save itself is to keep printing more money, since taxes wouldn’t be enough. Yusko adds that this is why the dollar continues to lose value over time, even describing the USD as “toilet paper or crepe paper.”
However, Yusko added in the interview that central banks officially adding Bitcoin to the lists of reserve assets will not happen anytime soon. He believes it could take up to 20 years for these institutions to fill their reserve baskets.
“I think it’s a 10- or 20-year process to get central banks around the world to realize that in order for them to have a viable central bank asset, they need to have gold and Bitcoin and a few other major currencies in their basket. ”
Central banks and crypto
Although central banks are largely averse to cryptocurrencies, a few institutions are currently working on or have launched central bank digital currencies (CBDCs). At least 11 countries, including Nigeria, Jamaica and several Eastern Caribbean countries, have launched CBDCs. Several others, including China, Singapore, Thailand, South Korea and Ghana, are currently in various stages of their pilot phases. But unlike these nations, El Salvador officially made Bitcoin legal tender in the country and has collected much of the royal coin. Interestingly, President Nayib Bukele recently announced in a chirping that the government would start buying Bitcoin every day from November 18, regardless of the current crypto bear market. However, El Salvador’s bullishness may not be enough to push Bitcoin to the coveted $100k level.
Nevertheless, there is still more than enough bullishness in the crypto sector. For example, McGlone, senior commodities strategist at Bloomberg Intelligence, believes that Bitcoin will reach $100,000 after the current global economic downturn fades. In a September interviewMcGlone
