Economists Suggest Central Bank of Barbados to Hold Bitcoin Reserve
A new working paper titled "Should Cryptocurrencies Be Included in the Portfolio of International Reserves Held by the Central Bank of Barbados" suggests the Barbadian Central Bank to hold a small portion of Bitcoin as a part of its foreign currency reserves. The paper is authored by two economists - Winston Moore and Jeremy Stephen who previous worked at the Central Bank of Barbados and currently lecture at the University of West Indies. The complete working paper can be read or downloaded here. [PDF]. The paper notes that Barbados maintains a peg against the US dollar, making it....
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Two Barbadian economists have concluded that the country's central bank may want to consider holding a small amount of bitcoin as part of its portfolio of foreign reserves. In a new working paper, the authors examine the potential role cryptocurrencies could play as part of the portfolio of external assets held by a central bank, using Barbados as a case study. The paper reads: "Within recent years, the proportion of digital transactions done using digital currencies has grown significantly. As a result, it is possible that digital currency could become a key currency for settling....
Central banks in every country always keep a certain level of financial reserves. In most cases, these reserves will consist of foreign fiat currencies, as well as precious metals, such as gold and silver. But the Central Bank of Barbados is looking at whether or not digital currencies should become a part of their reserve holdings portfolio. Due to the....
This is a guest post by Ben Best. Bitcoin and Austrian Economics. Austrian Economists are harsh critics of government central banks (such as the Federal Reserve System of the United States - a name intended to obscure its role as a central bank, unlike the Bank of England). Austrian Economists can also be very critical of fractional reserve banking, the practice of lending money in greater quantity than the amount of deposits. For these reasons, Austrian Economists could be expected to be enthusiastic supporters of Bitcoin. Unfortunately, this is usually not the case. Cryptocurrency,....
While the Bank of Tanzania (BOT) executives continue to reiterate the central bank’s willingness to heed the government’s call to prepare for cryptocurrencies, some economists insist Tanzania lacks the resources needed for it to adopt such digital currencies.
Economists: Tanzania an Unsuitable Candidate
In their views, published by the Citizen following the BOT’s latest update, Tanzania’s cryptocurrency opponents argue that a lack of resources makes it “difficult to participate in worldwide trade.”
For instance, the Citizen....
With inflation soaring in the U.S., economists from monetary policy analytics and forecasting firm LH Meyer say the U.S. Federal Reserve could stop shrinking its balance sheet earlier than expected. However, critics have said the U.S. central bank hasn’t really shrunk the Fed’s balance at all, and the entity has been accused of keeping quantitative easing (QE) practices persistent by continuing to purchase long-term securities from the market. Forecasting Firm LH Meyer Predicts Fed Will Shrink the Balance Sheet Earlier Than Expected, While the Central Bank’s Reductions....