Swiss National Bank Says No To Buying And Holding Bitcoin As A Reserve Currency ⋆ ZyCrypto

advertisement

& nbsp & nbsp

Critics have recently speculated that countries will soon adopt bitcoin as a reserve currency. However, speaking at a meeting, the head of the Swiss National Bank (SNB) said that the asset does not currently fit the provisions of the reserve currency.

“We do not believe that Bitcoin meets the requirements for currency reserves”

According to a Reuters report, the head of the Swiss Central Bank, Thomas Jordan, said that the main bank does not consider bitcoin a good option as a reserve currency. This came during the organization’s annual meeting on Friday.

Jordan revealed that buying bitcoin was not a problem for the central bank. He revealed that the bank could be directly or indirectly exposed to the digital asset. The official noted that if the time comes when a bank deems it necessary to add a digital asset to its balance sheets, it can do so quickly. However, Jordan added:

“But from the current perspective, we do not believe that bitcoin meets the requirements for currency reserves, which is why we have decided so far not to include bitcoin on our balance sheet.”

It’s no secret that Bitcoin followers see the asset as a great store of value. It’s an argument defended by Michael Saylor, a Bitcoin evangelist. With global economies facing the threat of high inflation and a possible recession, proponents like Saylor believe that bitcoin is the only alternative for people seeking to preserve their wealth.

advertisement

& nbsp & nbsp

With geopolitical tensions in Eastern Europe and Putin’s Russia threatening the dollar base by requiring payments for Russian gas in rubles, critics predict that we may see countries adopting the number one digital asset by market capitalization as a reserve currency if the dollar is replaced as the currency. global reserve currency. However, while Bitcoin proponents are happy with the prospect, crypto assets continue to trade as a risky asset rather than a store of value like gold.

Cryptography in Switzerland

Despite the statements of the head of the central bank, Switzerland remains one of the friendliest crypto destinations and ranks fifth in the latest Coincub rating. In February 2021, the country passed its own crypto law that provides comprehensive regulations for the emerging market, attracting many companies and investors.

It is also known that Finma, the designated emerging market regulator, is always ready to communicate clearly and openly with market participants. As a result, the country, which is famous for its highly professional and secret banking system, appears to have adapted well to the digital market and is on its way to becoming a cryptocurrency hub.

Notably, the Canton City of Lugano has already adopted bitcoin as legal tender. Bitcoin is down 0.38% in the past 24 hours, still trading around the $38.9K price point, far from its November 2021 high of $69K.

Leave a Comment