Can Bitcoin be used as a national foreign exchange reserve in the future?

[bhyviyt]

Since the Central Bank is proposing a nationally independent digital currency. The Bitcoin acts as a measure of global decentralization and corresponds to energy losses. Can it be used as future national foreign exchange reserves?

[nbjh]

Since the Central Bank is proposing a nationally independent digital currency. The Bitcoin acts as a measure of global decentralization and corresponds to energy losses. Can it be used as future national foreign exchange reserves?

Can Bitcoin make foreign exchange reserves? At present, it is not okay. At present, Bitcoin cannot be used to purchase international bulk commodities. At present, no country has said that Bitcoin can directly purchase domestic products. Therefore, at present, bitcoin is not yet available as a foreign exchange reserve. Unless, the Euro Yen Dollar supports Bitcoin, and promises that bitcoin can be exchanged for US dollars, Euros, and Yen, that countries concerned can consider, because the Euro US Dollar Yen can be bought. At present, Bitcoin has many problems in terms of finance and technology. It is still difficult to become a foreign exchange reserve, and there are still many political games.

[toorn]

I think it is OK. The development of digital currency is much faster than we expected because digital technology is constantly updated. It needs digital currency to accompany its development. Therefore, the development of digital currency will be getting better and better.

[DarLim11]

Definitely not. You do not want to put reserves into something that volatile. Its value may drip any time and can result to a loss to government.
We do not want that to happen.

Reserves must be kept in a safe place.

[Snaic]

Reserves of all countries are gold, that is, provided with gold. Unsupported foreign exchange reserves can not be at all. What will these reserves be for the country if they can depreciate in one day? No normal country will agree to have unsecured foreign exchange reserves.

[Kakmakr]

Foreign exchange reserves are reserve assets held by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy. You cannot use a global currency with high volatility to function in that role. You need a national asset with low volatility to be effective in that role.

China currently have about $3,520.4 billions of U.S. dollars worth of Reserve Assets.

[Suharti12]

I think it's very possible, it's very good when it's done to back up the national definition, because the technological developments make people switch both digital and bitcoin very helpful in financial funds.

[turbanto]

gold has always been the country's foreign exchange reserve. how can cryptocurrency replace gold I can not even imagine

[dothebeats]

It could be on of the reserve mix, but due to its current volatility, it wouldn't be an effective one seeig that it could lose hundreds of dollars of its value in mere minutes/hours. Also, only a few countries would ever dare touch crypto as one of their reserves since it can't be used fully whenever there'd be an emergency or something needs to be bought as no one wants to receive them. All of these scenarios are hypothetical, though, andd it could still change over the course of time.

[frowsiter]

Foreign exchange reserves are reserve assets held by a central bank in foreign currencies, used to back liabilities on their own issued currency as well as to influence monetary policy. You cannot use a global currency with high volatility to function in that role. You need a national asset with low volatility to be effective in that role.

China currently have about $3,520.4 billions of U.S. dollars worth of Reserve Assets.

That and also the receiver needs to be far more stable for example, gold, diamonds and other precious things really. If national reserve is flooded with the volatile currency like bitcoin then they will themselves have to rely on something far stable to support the consequences of national reserve depletion itself. I mean come on just imagine the bitcoin dropping all the way down to $1 then what would you say? The national reserve will drop accordingly and may compromise the main hub with that act. Thats why I am sure this is not possible.

[virendarnagpal]

Currently most of the countries are keeping their foreign reserves in US Dollars.  Giving strength to it's reserves Governments also keep security in the form of  Gold as reserves.  
We see the value of both of the above are volatile.  Value may rise and fall though scale of rise / fall may be narrow.  
In future it may be possible that foreign trade transactions if start in bitcoin then definitely the reserves in crypto will be created in export surplus countries.  The countries may allow then foreign investments in bitcoin.  There is nothing wrong if bitcoin is kept as reserves.  It's scale of volatility though is matter of concern.

[krigger]

It's possible since there is a limited amount of bitcoin which will always help to keep it's value intact as long as people keep using it. It being a national foreign exchange reserve is a good idea but bitcoin still has a long way to go in terms of price and stability and it's volatility doesn't help much in this case. People are wary and they want something they can trust and for now, it's not an easy road with bitcoin.

[Mohamme]

I have always thought that this is entirely possible, that bitcoin is likely to become an international currency in the future, so it should be possible for countries to store certain bitcoins as foreign exchange.

[squatz1]

I mean yes it could, any current, in theory, could be used as the foreign exchange reserve for the world. But they (foreign countries + USA) will NEVER allow something like that to happen. That would mean that all of the currencies pretty much just gave up in the fight against bitcoin and they accepted it with open arms.

So yes, in theory, it COULD be used. But that would never happen, countries would die over their control over currencies and they power that they have. So yeah, not happening ever.

[carlfebz2]

I mean yes it could, any current, in theory, could be used as the foreign exchange reserve for the world. But they (foreign countries + USA) will NEVER allow something like that to happen. That would mean that all of the currencies pretty much just gave up in the fight against bitcoin and they accepted it with open arms.

So yes, in theory, it COULD be used. But that would never happen, countries would die over their control over currencies and they power that they have. So yeah, not happening ever.

Same views regarding on this matter which it can really be used but as far as I live this thing wont ever really be happening.Every government want to control or do have the power by means on having their own currencies.I agree on the fact that no matter how they do fight bitcoin or crypto itself the would really give up in the end since they do know that they aren't really capable on stopping things.

[ganlianshifu1]

Unless the country has a huge BTC reserve of more than 50% of BTC issuance.

Otherwise it is very difficult to be a country's foreign exchange reserves!

Because the price of BTC is easy to control! If the state reserves BTC as foreign exchange, it is easy to cause economic turbulence!

[megynacuna]

Unless the country has a huge BTC reserve of more than 50% of BTC issuance.

Otherwise it is very difficult to be a country's foreign exchange reserves!

Because the price of BTC is easy to control! If the state reserves BTC as foreign exchange, it is easy to cause economic turbulence!

I don't think any serious country will do that but they can encourage it through the exchanges by allowing them operate freely so that they exist side by side with their national currency.

[cryptoroi]

At the moment, it is not likely to happen. Crypto market is still not stable. Gold is still better as reserve for Countries. But in coming days, when market is more stable, I will not be surprised if any Government makes the move.

[caberum]

Since the Central Bank is proposing a nationally independent digital currency. The Bitcoin acts as a measure of global decentralization and corresponds to energy losses. Can it be used as future national foreign exchange reserves?

no, no and no.
Until the day someone says to me they are holding 5 bitcoins worth of united states dollars bitcoin has no chance of being a reserve currency. Bitcoin is just a tool to get more fiat, it's not a currency guys. so it can never achieve reserve status

[@ophiuchuss13]

with the support of the state, crypto currency can take the place of the main currency in the future. Considering that the future is developing in the world of digital technologies, then the crypto currency is precisely that currency that will change the future.