Swiss National Bank Leader Disregards Bitcoin as an Asset for Reserves
Despite Switzerland’s increasing acceptance of cryptocurrencies, the President of the Swiss National Bank, Martin Schlegel, has dismissed Bitcoin as a viable reserve asset, describing it as a “niche phenomenon.”
Key Points:
- Martin Schlegel stated that Bitcoin would not be included in the reserves due to concerns over its volatility, liquidity, and security risks.
- A proposed initiative is advocating for the SNB to hold Bitcoin and gold in its reserves, aiming to gather 100,000 signatures for a nationwide vote on the matter.
In his comments, Schlegel explained that cryptocurrencies are too volatile for long-term stability, which is essential for central bank reserves. He expressed that the reserves must also be liquid for quick access if required for monetary policy purposes. He highlighted:
“Second, our reserves need to be highly liquid so that they can be used quickly for monetary policy purposes if needed.”
The ongoing debate in Switzerland comes as various banks in the country begin to offer cryptocurrency services. However, Schlegel maintains a positive outlook on the Swiss franc’s position against cryptocurrencies, asserting that the bank is not apprehensive of competition from these digital assets.
For further details, consult the full article on Swissinfo.
