Hedge fund manager Mark Yusko says central banks around the world will sooner or later officially recognize Bitcoin as a reserve asset.
Bitcoin as reserves assets
In a recent interview with Stansberry Research, Yusko says central banks have become less strict over time in their asset choices for their reserve. He said:
Central banks used to only have gold in their reserves. A little later they had gold and dollars, and then yen and euros. Now they also have some renminbi, and eventually they will also have Bitcoin in their reserve. Eventually, Bitcoin will even surpass gold because of this.
Yusko believes this will happen because the dollar is not strong enough to withstand US debt. He says the only way an empire can save itself is to keep printing more money, since taxes wouldn’t be enough. Yusko adds that this is why the dollar will continue to lose value over time, even describing the USD as toilet paper.
However, Yusko added in the interview that it won’t be anytime soon that central banks will officially add Bitcoin to their list of reserve assets. He thinks it could take 20 years for these institutions to fill their reserve baskets.
I think it’s about a 10 to 20 year process for central banks around the world to realize that they need to own gold and Bitcoin and a few other major currencies to be a viable central bank.
– Yusco
Central banks and crypto
While central banks usually turn against cryptocurrencies, a few institutions are currently working on 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 various stages of their pilot phase.
Unlike these countries, El Salvador has recognized Bitcoin as legal tender. Interestingly, President Nayib Bukele recently announced in a tweet that the government would start buying Bitcoin every day starting November 18, regardless of the current state of the bear market.
Nevertheless, there is still plenty of bullish sentiment in the crypto sector. Bloomberg analyst McGlone believes Bitcoin could hit $100,000 after the current global economic downturn is over.
