Banks use tools as a store of value by holding some assets in reserves, for various economic benefits. Although, adopting Bitcoin in such capacity, would have it's pros and cons.
Only what I see are pros because bitcoin is different from the fiat the countries are using because bitcoin is deflationary. Bitcoin price may fall in short period of time but it will later increase, get to all time high and still increase more.
Yeah I think that's just the significant difference between
fiat and bitcoin fiat can fall in value for a long duration while the dip in the price of bitcoin does not last long, it can only last for some couple of days for example (3 to 4 days) sometimes it might not even get to this before it will start appreciating again. While the dip in fiat can last for some couple of months sometimes years before it will start appreciating again, so therefore I think is not a bad idea if the bank choose to hold bitcoin as reserve.