In study that was just recently released, Harvard economist Matthew Ferrante recommended that Apex keeps a small amount of Bitcoin (BTC) in reserves. 

Rationale behind the statement

In spite of the declining prices for Bitcoin and crypto in general, the experts claim that Bitcoin would be a finer hedge against endorsements and economic instability than precious metals and would be a good-varied choice for the majority of states with poor economic systems.

In support of this position, the Harvard professor added that now, given that the fiat reserve currency’s reputation as a harmless and risk-free possession has recently waned, purchasing Bitcoin is the best course of action. 

Particularly, there has been an increase in instances of indorsements, in which countries that issue conventional backlog money, like the US and its alliances, halt trading deals in sight of instability without actually upholding their fundamental obligations.

He said as follows in his review article that, given that Bitcoin is less volatile than gold, the professor thinks that the country’s Apex banks will use it to help these nations better manage their risk of economic pressure from other countries and governments. 

According to the study, gold reserves rose in nations that might be subject to US sanctions between 2016 and 2021, while they fell in nations with lower risk of sanctions. 

Comments on the professor’s presentation

Although the economic science professor’s display sparked a great deal of debate, neither educators nor politicians have had a chance to review the report. Professor Matthew’s chances of admission are, however, fairly high given his background in education.

As one may recall, K. Rogoff, a Harvard University academic and former IMF chief economist, only has Ferranti as a consultant. Most Apex banks continue to prioritize CBDCs in the interim. 

Few Apex banks currently work extensively with Bitcoin. A main bank electronic currency is what they are concentrating on creating instead.

There are currently more than 100 Apex banks in various degrees of CBDC evolution, according to a recent CBDC tracking report.

The adoption of cryptocurrencies is currently only being accelerated by El Salvador. The Apex bank reserves are yet being supplemented with cryptocurrencies, which we declared legal tender last year.