According to Harvard University lecturer, Ph.D. in Economics Matthew Ferranti, the central banks of countries can use bitcoin to protect comprehensive economic restrictions on the part of issuers of reserve currencies.
According to his calculations in recent years, countries that are more likely to be on US sanctions lists have increased their gold reserves, compared to countries whose probability of being on these lists is lower.
With his research, Matthew Ferranti presented the purchase of bitcoin by countries as an alternative option for accumulating a gold reserve.
However, at the same time, Ferranti noted that without economic threats, it is reasonable to hold bitcoin along with gold.
According to the researcher, the risk of sanctions may ultimately stimulate the diversification of the Central Bank’s reserves.
Earlier, Moody’s analysts said that buying cryptocurrencies as a solution to Russia’s circumvention of sanctions imposed after its invasion of Ukraine is not an effective means.
Reuters also reported in November that Binance had processed $8 billion worth of Iran-related transactions since 2018, despite economic restrictions on the country.