The Swiss National Bank has ruled out the possibility of using bitcoin as a form of central bank reserves
As recently as a few years ago, several experts predicted the adoption of Bitcoin as the world’s reserve currency. SNB chief Mario Draghi, meanwhile, has said that the asset does not now match the requirements of a reserve currency.
Cryptocurrency reserves aren’t something that bitcoin can provide, according to one analyst. An SNB official told Reuters that the top bank does not see Bitcoin as a viable alternative for reserve currency use. This was expressed during the organization’s annual meeting on Friday by the person in charge of that department.
The central bank, according to Jordan, has no issues with the purchase of Bitcoin. It was found that the bank might have direct or indirect exposure to the digital asset. According to the source, the bank may easily add the digital asset to its balance sheets if it so chooses. Jordan, on the other hand, added:
Although we don’t currently feel bitcoin fits the existing standards for currency reserves, we’ve opted not to include it on our balance sheet. “
It’s hardly a secret that Bitcoin supporters consider the currency a valuable asset. Michael Saylor, the Bitcoin enthusiast, has made this point several times. Proponents like Saylor feel that Bitcoin is the only viable option for consumers who want to protect their savings from growing inflation and a probable recession.
Cryptocurrency may become a global reserve currency if the dollar is dethroned as the world’s reserve currency due to geopolitical concerns in Eastern Europe and Putin’s Russia seeking payments for Russian gas in rubles, according to certain commentators and analysts. In contrast, proponents of the cryptocurrency Bitcoin are ecstatic about this potential, but the crypto asset continues to trade like a risky asset rather than a store of value like gold.
Swiss Cryptocurrency Adoption
According to Coincub’s newest evaluation, Switzerland is one of the world’s most welcoming places for cryptocurrency, ranked 5th. In February 2021, the government established comprehensive crypto legislation that attracted a number of enterprises and investors to the young sector.
Also noted for its willingness to communicate simply and freely with market players is Finma, the fledgling market’s appointed regulators. By doing so, this once-respected banking institution looks to have successfully transitioned to the digital age and appears to be on its path toward being a leading crypto centre.
The Canton City of Lugano in Switzerland has previously accepted Bitcoin as a legitimate form of currency. With a daily loss of 0.38 percent, Bitcoin is now selling at $38.9k, much below its all-time high of $69k set in November 2021.