Experts have recently predicted that nations would soon embrace BTC as a reserve currency, which has fueled speculations in the crypto community. However, addressing individuals at an event, the leader of SNB (the Swiss National Bank) stated that the digital asset does not presently match the requirements of a reserve asset. He stated that;
“Bitcoin does not satisfy the conditions for an asset reserve.”
SNB Says No To Crypto Reserve
As stated by Reuters, Thomas Jordan, the Chairman of the SNB, has noted that the central bank does not see BTC as a viable reserve currency. The official said this at the firm’s annual meeting, which took place on Friday.
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The chairman said the national bank has no problems with the purchase of BTC. As a result of his disclosure, the bank may have indirect or direct access to it. In addition, the official said that if the apex bank determines that it is appropriate to include the crypto asset on its balance sheets, it would be able to do so rapidly. Jordan, on the other hand, added:
“In the present environment, however, we do not feel Bitcoin fits the standards for currency reserves, which is why we chose not to include Bitcoin in our assets for the time being.”
Most Bitcoin supporters see the cryptocurrency as a valuable store of money. Bitcoin advocate Michael Saylor argued in favour of this position several times. Because of the prospect of growing inflation and a likely recession, BTC proponents such as Saylor feel that this currency is the only viable option for those who want to save their money during these economic challenges.
Political analysts predict that if the US dollar is no longer the international reserve currency, countries will turn to Bitcoin, the most valuable crypto asset, by market capitalization. This is due to geopolitical strife in Europe and Putin’s Russia’s demand for payments in Russian rubles for gas. Despite the excitement among Bitcoin supporters, the digital asset is trading as a risky asset.
Switzerland Has Embraced Cryptocurrency
Despite the words made by Switzerland’s apex bank director, the country continues to be among the most crypto-friendly places, placing 5th in the recent list by Coincub. In 2021, the nation enacted its cryptocurrency legislation which offers favourable laws for the growing sector, garnering the attention of several enterprises and crypto investors.
Finma, the appointed regulatory agency for the fledgling market, is likewise well-known for being always willing to speak plainly and freely with market players, regardless of the situation. Thus, despite being best known for its highly secret and professional system of banking, the nation looks to have successfully adapted to the crypto market and will soon become a crypto centre. Notably, Lugano in Switzerland has already embraced Bitcoin as a legal means of exchange.
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