I used to think the adoption of bitcoin by central banks for their reserves would happen soon, given the urgent need in some pockets of the global economy – now I realize that getting regulators comfortable with the idea, especially after the high level of misunderstanding of what the FTX collapse is actually about (i.e., fraud, not crypto), could take some time. But it is becoming increasingly clear to me that it will happen, because it needs to happen. The doubt and distrust sown by recent crypto drama will recede, and the desperate need to shore up economic resilience – combined with a growing understanding of the relative simplicity of an asset that can be converted into dollars or any other currency at any time – will incentivize greater acceptance and experimentation.
