A new working paper titled “Should Cryptocurrencies Be Included in the Portfolio of International Reserves Held by the Central Bank of Barbados” suggests the Barbadian Central Bank to hold a small portion of Bitcoin as a part of its foreign currency reserves.
The paper is authored by two economists – Winston Moore and Jeremy Stephen who previous worked at the Central Bank of Barbados and currently lecture at the University of West Indies.
The complete working paper can be read or downloaded here. [PDF]
The paper notes that Barbados maintains a peg against the US dollar, making it necessary for the Central Bank of Barbados to hold enough reserves of several foreign currencies as a precautionary measure.
The authors note their paper provides “an assessment of the potential benefits and costs of holding bitcoins as part of the portfolio of international reserves using the case of Barbados.”
The Working Paper’s Methods
The paper was created from the usage of two main empirical tools used