2018: The Year Central Banks Begin Buying Cryptocurrency

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Behind closed doors, G7 central banks are sluggish traders that buy and sell the same foreign currencies, marketable securities, special drawing rights (SDR) and gold day in and day out.

Central bank traders follow the investment policy enforced by the executive committees with specific asset allocation targets. In order of importance, the objective for foreign reserves trading generally is liquidity, security and returns (in last place).

Currently, the G7 is only concerned with the “appropriate regulation” of cryptocurrencies and not with the asset class potential of cryptocurrencies. Bitcoin, ether and zcash are nowhere to be found on the list of eligible instruments and currencies that central bankers are allowed to trade.

In 2018, things will be different. G7 central banks will start buying cryptocurrencies to bolster their foreign reserves.

The times they are a-changin’.

Source: https://icodaily.net/




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