The UAE Central Bank’s landmark decision to allocate $5 billion (1% of reserves) to Bitcoin has sparked a global reassessment, with Singapore and Switzerland exploring similar moves. Standard Chartered now sees 10% of central banks holding BTC by 2030, up from 0% in 2023.
Implications:
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Dollar Diversification: Central banks hedge against USD devaluation.
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Settlement Use: UAE tests BTC for oil trades with India and China.
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Price Impact: Every 1% of central bank reserves = $200K BTC, per Fitch.
Critics Warn:
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Volatility Risks: BTC’s 30-day volatility still exceeds gold’s 300%.
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Sanctions Evasion Fears: U.S. lawmakers push for CBDC countermeasures.
