Definition ∞ A Global Reserve is a substantial store of value, typically held by central banks or international monetary authorities. It is used to support a country’s financial stability and influence its currency’s standing. Historically, these reserves have consisted of major fiat currencies or gold. It functions as a financial safety net for nations.
Context ∞ The potential for certain cryptocurrencies or digital assets to serve as a component of global reserves is a recurring discussion in digital economics. Attributes such as decentralization and fixed supply are considered. However, volatility, regulatory uncertainty, and scalability remain significant obstacles to widespread adoption by central banks.
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