On October 27, 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 hedge against rising inflation, geopolitical risks, capital control risks, sovereign defaults, bank failures, and international sanctions imposed by the U.S. government. The author of the paper, economist Matthew Ferranti, argues that Bitcoin is an "effective portfolio diversification tool" due to the weak correlation between decentralized assets and other financial instruments. Bitcoin lacks counterparty risk and can effectively hedge against sovereign defaults (including financial sanctions risk), which Ferranti calls a "selective default" that affects countries such as Venezuela and Russia. Ferranti clarified that Bitcoin and gold allocation may not be the answer for every central bank; however, emerging digital assets have the same store of value and hedging properties as gold - especially in the event of a rapidly depreciating currency.