Bitcoin Policy Institute: Bitcoin is an "effective portfolio diversification tool."

ChainCatcher news, according to Cointelegraph, the Bitcoin Policy Institute recently published a paper titled "The Case for Bitcoin as a Reserve Asset," which argues that central banks should adopt Bitcoin as a reserve asset to hedge against rising inflation, geopolitical risks, capital control risks, sovereign defaults, bank failures, and international sanctions imposed by the U.S. government.

The paper's author, economist Matthew Ferranti, believes that Bitcoin is an "effective portfolio diversification tool" due to its low correlation with other financial instruments.