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- Central banks are becoming more receptive and may start accepting BTC as a reserve asset.
- IBTC investor Yusko believes bitcoin is going to replace Gold as a reserve by banks.
Veteran investor and hedge fund manager Mark Yusko is bullish on Bitcoin. According to the Morgan Creek Capital exec, the world’s central banks will officially recognize Bitcoin as a reserve asset as debt continues to pile.
Speaking in a recent Stansberry Research interview, Yusko says that over time, central banks have become less restrictive of their reserve asset choices. He said:
“What’s going to happen is central banks just used to have 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 then eventually, Bitcoin will edge out gold.”
Yusko believes this will happen because the dollar is not strong and is not enough to withstand US debt. He says that the only way for “an empire that’s overly indebted” to save itself is to keep printing more money, as taxes wouldn’t be enough. Yusko adds that this is why the dollar keeps losing value over time, even describing USD as “toilet paper, or crepe paper.”
However, Yusko added in the interview that central banks officially adding Bitcoin to their lists of reserve assets will not happen anytime soon. He believes it could take up to 20 years for these institutions to populate their reserve baskets.
“I think it’s a 10- or 20-year process of having central banks around the world realize that in order for them to have a viable central bank asset, they’ll have to have gold and Bitcoin and a few other major currencies in their basket.”
Central Banks and Crypto
Although central banks are mostly 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 varying stages of their pilot phases. But unlike these nations, El Salvador officially made Bitcoin legal tender in the country and has accumulated much of the king coin. Interestingly, president Nayib Bukele recently announced in a tweet that the government would start buying Bitcoin every day from November 18, regardless of the current crypto bear market. However, El Salvador’s bullishness might not be enough to push Bitcoin to the much-desired $100k level.
Nevertheless, there is still more than enough bullishness in the crypto sector. For instance, Bloomberg Intelligence senior commodity strategy McGlone believes Bitcoin will hit $100k after the current global economic downturn dissipates. In a September interview, McGlone
