[2015-11-29] Should Cryptocurrencies be included in the Portfolio of Intl Reserves held by Central Bank of Barbados?

[BitcoinXio]

Should Cryptocurrencies be included in the Portfolio of International Reserves held by the Central Bank of Barbados?

In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the value of the fiat currency. These assets can be in the form of gold, foreign exchange, or some other internationally recognised reserve asset and are held to permit the country to engage in international transactions. Within recent years, cryptocurrencies have been increasingly utilised for international transactions, and it is possible there use might expand in the future. This paper therefore examines the potential role of cryptocurrencies as part of the portfolio of external assets held by a central bank. Using the case of Barbados, the paper also provides a simulation of the effect holding some proportion of their asset base would have had on the stability of the foreign reserves as well as the return on the portfolio of assets.

http://www.centralbank.org.bb/news/arti ... l-reserves

[CryptAxe]

They simulated keeping up to 5% of their reserve in Bitcoin for the paper! Thanks for sharing this it's a good read.

[BitcoinXio]

They simulated keeping up to 5% of their reserve in Bitcoin for the paper! Thanks for sharing this it's a good read.

You're welcome!

[BitcoinXio]

Tuur Demeester has commented on the good news too here

topic2911-30.html#p10145

in the paper, the authors project a whopping $224M return on a mere $27k investment!

[arnoudk]

I'm speachless. I would not have expected any central bank of any country to be this optimistic this soon.

Thanks for the link!

[LiteCoinGuy]

these are the news that excite me even when iam in bitcoin since 3 years

where can i find the 5% by the way? has anyone some calculations based on that?

[CryptAxe]

these are the news that excite me even when iam in bitcoin since 3 years

where can i find the 5% by the way? has anyone some calculations based on that?

About halfway into the paper they basically simulate the economy of Barbados as if they kept up to 5% of their reserves in Bitcoin so you can get those numbers out of the paper if you are smarter than me and can figure it out

[LiteCoinGuy]

i did, thank you anyway