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 controls, sovereign defaults, bank failures, and international sanctions imposed by the U.S. government. The paper's author, economist Matthew Ferranti, argues that Bitcoin is an "effective portfolio diversification tool" because of the weak correlation between decentralized assets and other financial instruments.