What do you think about countries having Cryptocurrencies as reserves?

[Henrywrites]

There have been reports that some countries of the world are making plans to invest on crypto coins. We all know most governments have reserves in fiat money as a shock absorber when things go wrong. Do you see some top countries doing same with crypto coins?

 

[Arantor]

Infeasible.

The whole point of a reserve is that it has something of value even if the fiat value of a currency is driven down. Since all cryptocurrencies are inherently fiat, they have no underlying backing of value beyond true market price - i.e. they're only *ever* worth what someone will pay for them, rather than having something underlying of intrinsic value such as gold.

It is otherwise functionally no different from saying 'I'm going to use the paper notes from Monopoly as the reserve'.