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Despite the renewed interest in gold and Bitcoin, the U.S. dollar continues to overshadow other reserve assets due to its safety, liquidity, and yield. Central banks can generate returns through U.S. government debt at rates approximately 4.4%, in comparison to gold, which incurs storage costs, and Bitcoin, which offers no guaranteed returns.
Liquidity stands out as a critical aspect for central banks. The ability to sell assets without affecting their price is paramount. The U.S. dollar, supported by extensive financial markets, allows for easier transactions compared to gold and Bitcoin, which could be impacted significantly by the sale of large amounts, making them less desirable for crisis management.