Lyn Alden, a widely-respected macroeconomist, believes that international central banks would be irrational not to examine Bitcoin (BTC).
In a new interview, Alden asserts that crypto will eventually become globally prominent, as indicated by its adoption in multiple nations.
According to Alden, the long-term trend suggests that the subject will become relevant globally. It is already relevant to individuals in Nigeria, Argentina, and Lebanon. It is considered a form of global currency, although more is needed for the largest pools of capital.
Alden also believes it would be unwise for central bankers and sovereign wealth funds not to study and analyze the subject. Smaller countries have an advantage in recognizing its relevance sooner than larger countries. The recent case of El Salvador is an example, and it remains to be seen how that story unfolds.
Alde added that certain nations have a higher incentive to adopt cryptocurrencies, but other nations will discover their usefulness as their use grows more prevalent.
Alden further explains that countries that are in rebellion or have a rebellious attitude toward the traditional financial system may adopt this technology earlier. Unfortunately, even North Korea may already be using it as a tool, similar to buying drugs on the internet. It is a useful technology, and history has shown that even drug dealers were early adopters of new technologies such as pagers in the 1980s.
Alden also noted that some early adopters might have a stronger motivation to enter the market quickly. However, as the market grows larger, becomes more liquid, less volatile, more widely held, and better understood, it will become more relevant on a sovereign scale.