Reserve Dollar

Bank

Bitcoin

Resistance

Reserve

In a recent statement, Chairman Thomas Jordan reiterated the Swiss National Bank’s cautious stance regarding the integration of Bitcoin into its currency reserves. Despite mounting pressure from campaigners pushing for amendments to Swiss law to allow cryptocurrencies in reserves, the SNB remains apprehensive.
Chairman Jordan emphasized the complexity and potential risks associated with acquiring Bitcoin as part of the <a href="https://coingape.com/swiss-national-bank-says-it-has-no-plans-to-add-bitcoin-as-a-reserve-currency/" rel="noopener noreferrer nofollow">SNB’s reserves</a>. He pointed out concerns related to the environmental impact of Bitcoin mining and transactions, particularly in terms of carbon emissions. Additionally, Jordan stressed the importance of currency reserves being highly liquid, sustainable, and easily tradable on international markets. These criteria raise doubts about Bitcoin’s suitability as a reserve asset in the eyes of the SNB.
<h2 id="concerns-over-bitcoin-s-viability-as-a-reserve-asset">Concerns Over Bitcoin’s Viability as a Reserve Asset</h2>
Chairman Jordan’s remarks shed light on the SNB’s apprehensions about <a href="https://coingape.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin’s</a> viability as a reserve asset. While Bitcoin has gained popularity as a decentralized digital currency, its volatility and energy-intensive mining process present challenges for central banks considering its inclusion in their reserves.
The SNB’s reservations regarding Bitcoin’s environmental impact echo broader concerns within the financial community about the sustainability of <a href="https://coingape.com/glossary/cryptocurrency/" rel="noopener noreferrer nofollow">cryptocurrencies</a>. The energy consumption associated with Bitcoin mining has raised questions about its long-term viability as a store of value, particularly in light of increasing global efforts to combat climate change.
Also Read: <a href="https://coingape.com/96000-btc-options-expiry-sets-max-pain-price-at-61000-whats-next/" rel="noopener noreferrer nofollow">96000 BTC Options Expiry Sets Max Pain Price At $61,000, What’s Next?</a>
<h2 id="campaign-for-bitcoin-inclusion-faces-snb-resistance">Campaign for Bitcoin Inclusion Faces SNB Resistance</h2>
Despite calls from a campaign group advocating for the SNB to diversify its reserves by including Bitcoin, resistance persists within the central bank. The campaign argues that holding Bitcoin would not only enhance Swiss sovereignty and neutrality but also provide an opportunity for greater diversification of the SNB’s investment portfolio.
However, SNB representatives, including Luzius Meisser from Bitcoin Suisse, have expressed skepticism about the campaign’s proposals. Meisser highlighted the SNB’s past losses on government bonds and suggested that investing in Bitcoin could offer greater long-term stability and potential returns. He emphasized the value of Bitcoin as a hedge against inflation and a store of value, contrasting it with traditional assets like government bonds.
Also Read: <a href="https://coingape.com/missed-bonk-boden-wif-whales-are-buying-these-meme-coins-now/" rel="noopener noreferrer nofollow">Missed BONK, BODEN, WIF? Whales Are Buying These Meme Coins Now</a>
The post <a href="https://coingape.com/swiss-national-bank-casts-doubt-on-bitcoin-as-reserve-currency/" rel="noopener noreferrer nofollow">Swiss National Bank Casts Doubt On Bitcoin As Reserve Currency</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Swiss National Bank Casts Doubt On Bitcoin As Reserve Currency

Table of Contents

Coingape News Media

Other articles published on Apr 26, 2024

With the Market in Flux Algorand & Sei Investors See Pushd’s E-Commerce Presale as the Next Big Move

Analyst Deems Investing in Ethereum (ETH) ‘So Stupid,’ Recommends Better Crypto to Invest In

Web3 World Consortium: A Remarkable Event in Web3 Space

The Pepe Price Pumps 3% As Investors Turn To This Chain-Traveling Dogecoin Derivative For Parabol...

L7 (LSD) Surges Almost 90% In 24 Hours, Trading Above $3

Shiba Inu (SHIB) Teases Big Plans for Shibarium Hard Fork: Details

Join our free newsletter for daily crypto updates!