Morgan Stanley Research discusses the scope for crypto to be included in the global reserve of central banks.
"For crypto to be a credible store of value for a country, it needs to be considered to be widely accepted as a means of payments for goods and services (as well as liquid and relatively stable)," MS notes.
"Today most cryptocurrencies, including bitcoin, are used as speculative assets rather than currencies, meaning it is unlikely, but not with zero probability, that country reserves would move to crypto in the near future. Which payment approach is used in the long run is still up for market debate and likely to be heavily influenced by regulation. For now, few countries recognise crypto as a legal means of payment and one country even banned crypto's use in payments in the past week. The crypto markets will, however, be on the lookout for any proposed commodity or goods transaction to be paid in bitcoin or another crypto," MS adds.