State-backed Financial Institution in China Praises Bitcoin – What’s Going On?

The International Monetary Association (IMI), China’s state-backed financial think tank, has published a remarkable analysis of Bitcoin’s role in the global reserve system. The IMI article states that Bitcoin is no longer just a speculative tool, but is starting to be positioned as a strategic reserve asset. IMI states that due to high US budget deficits, expansionary monetary policies and the continuous decline in real yields on US Treasury bonds, many countries’ central banks are turning to alternative reserve assets. The organization said that in this environment, new competitors have emerged against traditional reserve instruments such as gold, and that Bitcoin is increasingly attracting institutional attention with its fixed supply structure and decentralized nature. Related News: White House Officials Speak Out Following Developments in US-China Trade Tensions: Will the 145% Tariff Be Reinstated? The published analysis notes that some countries’ central banks and sovereign wealth funds have had contact with Bitcoin or have indirectly invested in it. For example, Norway’s sovereign wealth fund’s indirect Bitcoin ownership is cited, which is considered an indication that Bitcoin is beginning to be accepted as a long-term store of value. It is stated that Bitcoin can become a protection tool against the instability of traditional currencies, especially for developing countries struggling with high inflation and whose national currencies are under great pressure. According to IMI, in this period when the global financial order began to reshape, Bitcoin has evolved from its “speculative asset” identity to the role of a “strategic reserve asset” with the weakening of the dominance of the US dollar. *This is not investment advice. Continue Reading: State-backed Financial Institution in China Praises Bitcoin – What’s Going On?

Source: BitcoinSistemi