harvard economics professor matthew ferranti has created a bit of a stir with a new research paper where he advises central banks to buy bitcoin btcusd what happened according to ferrantis research it makes sense for many central banks to hold a small amount of bitcoin under normal circumstances and much more bitcoin if they face sanction risks see more best cryptocurrency to hedge against inflation in his paper hedging sanctions risk cryptocurrency in central bank reserves ferranti explores the possibility of bitcoin serving as a hedging alternative asset in the event that a central bank is unable to sufficiently hedge its sanctions through physical gold the better option according to him is bitcoin why its important gold is the obvious choice for a country looking to protect itself against sanctions he said in an interview with forbes however obtaining physical gold may be difficult in certain cases “it may take a long time to obtain gold which a country under threat of sanctions may not have and physical possession of it may be impossible” this is where bitcoin can come to the rescue according to his research from 2016 to 2021 countries facing a higher risk of us sanctions saw an increase in their gold reserves while countries facing a lower risk saw a decrease in their gold reserves despite the faceripping price volatility of bitcoin or other cryptocurrencies ferrantis model shows that they could serve as an effective sanction insurance policy price action btc is trading at 16493 up 497 at the time of writing according to benzinga pro  read next cathie wood reiterates 1m price target for bitcoin sometimes you need to go through crisis to see survivors