The Swiss National Bank Declared That It Will Not Purchase Or Hold Bitcoin As A Reserve Currency.
Pundits have recently predicted that countries will embrace Bitcoin as a reserve currency in the near future. However, the head of the Swiss National Bank (SNB) stated at a meeting that the asset does not now match the requirements of a reserve currency.
According to a Reuters article, the Swiss National Bank Chairman Thomas Jordan stated that the central bank does not see Bitcoin as a viable reserve currency option. This was said by the official at the organization’s annual gathering on Friday.
Jordan stated that the central bank had no difficulties purchasing Bitcoin. He revealed that the Swiss bank could have direct or indirect exposure to the digital asset. The source added that if the bank decides to add the digital asset to its balance sheets in the future, it will be able to do so rapidly. Jordan, however, added:
“But from the current perspective we do not believe bitcoin meets the requirements of currency reserves, that’s why we have until now decided not to have bitcoin on our balance sheet.”
It’s no secret that Bitcoin supporters regard the currency as a valuable store of value. It’s a point that Bitcoin evangelist Michael Saylor has made multiple times.
As the world’s economies confront inflationary pressures and the possibility of a recession, proponents like as Saylor think Bitcoin is the only viable option for anyone looking to preserve their capital.
With geopolitical tensions in Eastern Europe and Putin’s Russia threatening the dollar’s base by requesting payments for Russian gas in rubles, pundits speculate that if the dollar is displaced as the global reserve currency, countries may adopt the number one digital asset by market cap as a reserve currency.
While Bitcoin supporters are excited about the potential, the cryptocurrency continues to trade as a risk-on asset rather than a store of value like gold.
Despite the central bank chief’s remarks, Switzerland remains one of the most crypto-friendly countries, ranking fifth in Coincub’s newest list. The country established its crypto law in February 2021, which provides extensive laws for the nascent market and has attracted a number of enterprises and investors.
Finma, the nascent market’s authorized regulators, is also known for being willing to communicate with market participants in a transparent and open manner. As a result, the country, which is best renowned for its highly secure and competent banking system, looks to have adapted well to the digital market and is on its way to becoming a crypto hub.
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