Deutsche Bank has highlighted several benefits associated with the decision of the US to proceed with a Strategic Bitcoin Reserve. The German bank says the move can trigger economic upsides for the US while laying a precedent for international standards. Bitcoin Is Akin To Gold And Will Provide A Range Of Economic Benefits, Say Deutsche Bank German multinational investment bank Deutsche Bank has hailed the US for its decision to roll out a Strategic Bitcoin Reserve. According to a paper , the bank says the move will provide a swathe of economic benefits for the US while placing the US in pole position to drive international standards. Analysts at the bank described Bitcoin as similar to gold with an element of scarcity given its fixed supply. Deutsche Bank points to Bitcoin’s clear decentralization and security standards as distinguishing features from altcoins. Since Bitcoin has never suffered a security breach, Deutsche Bank says it is a “hard reserve asset” with several benefits. For one, its low correlation with other assets makes it a worthy option for portfolio diversification in the US. “By holding Bitcoin long-term, the US aims to strengthen its leadership in the global digital economy and potentially hedge against inflation or dollar depreciation,” read the paper. The Strategic Bitcoin Reserve has the potential to “offset national debt” if Bitcoin prices continue to rise, a sentiment shared by Frank Templeton. Outside of the pecuniary benefits of the move, Deutsche Bank says the US can repeat history by setting international standards for Bitcoin akin to its gold standard in the 19th and 20th centuries. The US Will Hold Onto Confiscated Assets For Its Strategic Bitcoin Reserve According to the official document, the bulk of BTC in the reserve will be confiscated assets currently in custody of US authorities. However, the US will explore budget-neutral bitcoin accumulation strategies to bolster its holdings at zero cost to taxpayers. There are suggestions that China may follow the lead of the US to roll out a Strategic Reserve, potentially sending BTC to $200K . Several countries are reportedly warming up to launch their Strategic Bitcoin Reserves in the coming months. Despite the announcement of the US Strategic Bitcoin Reserve, BTC price has tumbled to $82K as ETF outflows reach new highs. The post Deutsche Bank Says US Strategic Bitcoin Reserve Can Offset National Debt appeared first on CoinGape .
