A Ph.D. student at Harvard suggested Central Banks hold Bitcoin, to circumnavigate sanctions.
At present, there is only the Central American country El Salvador which is holding approximately 3,000 Bitcoins on its government treasury fund balance sheet officially. Few countries & small states around the world are approaching the Bitcoin network adoption, to bring modernization to their traditional payment system but still, they are far from the Bitcoin buy & hold plans.
Recently Mathew Ferranti, a Ph.D. candidate at Harvard University, published a research paper to share his opinion on Bitcoin holdings by Government agencies. Through the research paper, he asserted that central banks should hold Bitcoin in their hands.
Research notes that highly centralization focussed regulation in this innovative sector may help to prevent the misuse of Bitcoin-supported payments easily. So probably, that Ph.D. candidate wants to say that holding Bitcoin & playing games with it may help to increase education & awareness of how this technology works & how it can be monitored perfectly.
Alongside the benefits, research notes some unintended consequences, “like hurting the population of the country that you’re sanctioning.”
Russia vs Ukraine conflicts & Bitcoin adoption
In late February of this year, Russia vs Ukraine conflict started and that forced both countries to go with crypto-supported payment options. On one side, Ukraine grabbed financial support via crypto donation, on the other side, Russian government agencies tried to bring ways to bypass the international financial sanctions, which were imposed by the western countries because of Russian military invasions on Ukraine.
Due to the whole Russia vs Ukraine conflict, the majority of the big owners came to know that it is possible that Bitcoin & other crypto assets can be used to facilitate payments without any need for third-party centralised banking support.
Read also: Coinbase holding 2 million Bitcoins in its reserves
Harvard research paper suggests central banks hold Bitcoin