Swiss Central Bank Chairs Skepticism on Bitcoin Reserves
At the Swiss National Bank's (SNB) annual general meeting, Chairman Thomas Jordan articulated concerns over incorporating Bitcoin into the bank's currency reserves. Jordan pointed out several risks associated with the cryptocurrency, including its volatility, environmental impact from energy-intensive mining, and overall liquidity. These attributes, he suggested, do not align with the central bank's requirements for reserves that need to be liquid, stable, and easily tradable to facilitate international settlements.
Despite the SNB's cautious stance, there is a movement among some Swiss crypto advocates pushing for Bitcoin to be included in the national reserves. Proponents like Yves Bennaïm have proposed a constitutional amendment to mandate the SNB to hold a portion of its reserves in Bitcoin, alongside traditional assets like gold. Luzius Meisser, chairman of Bitcoin Suisse, has argued that Bitcoin could offer higher returns and strengthen Switzerland's financial independence. This group aims to gather 100,000 signatures to bring the issue to a national referendum.
The SNB, however, has not made any decision to invest in Bitcoin, maintaining that the bank's investment strategy should prioritize the safety and liquidity of its currency reserves. This comes at a time when Bitcoin's market valuation has experienced a recent 2% decline, with its trading price standing at $63,002. Despite the debate within the Swiss financial community, the SNB remains committed to a conservative approach to managing the nation's currency reserves.
