Bitcoin and Gold Emerge as Sanctions Hedges for Central Banks

Central banks are rethinking how they manage international reserves as financial sanctions become a growing ￰0￱ 2016 and 2021 countries more exposed to US sanctions increased their gold holdings faster than those with lower ￰1￱ is attractive because it remains beyond the direct control of foreign ￰2￱ study also tests whether Bitcoin can play a similar ￰3￱ a Bayesian model to simulate returns the analysis shows that higher sanctions risk makes central banks allocate more to gold renminbi bonds

and ￰4￱ Treasuries lose appeal under sanctions Bitcoin and gold gain strategic value despite their ￰5￱ conclusion is clear: the risk of sanctions may drive long-term diversification of central bank reserves supporting demand for both cryptocurrency and ￰6￱ shift could reduce the dominance of traditional fiat assets and strengthen Bitcoin’s role in the global financial system.