Does a country having Bitcon reserve make the local currency stronger?

[Min George]

I have heard in the news that some countries are having Bitcon reserves. I want to know the particular significance of Bitcon reserves on the local currency of a country.

Does having a Bitcon reserve make the local currency stronger?

 

[Suba]

Good question. If a country adopts or has a Bitcoin reserve, it can indirectly strengthen or weaken the local currency depending on the market or if the BTC price drops drastically. So, Bitcoin indirectly protects the country from inflation, increases investor confidence, and so on.

 

[Nomad]

If the government officially has bitcoin as a reserve currency, I think the crypto market can have positive or negative effect.

 

[Augusta]

I think bitcoin reserves can strengthen a currency by attracting investment, but volatility is a risk. It depends on economic stability and global trends.

 

[Kera]

Bitcon with its potential to rise very high can be a big hedge against inflation for a country that has it in reserve.