Pundits in recent times have speculated that countries will soon adopt Bitcoin as a reserve currency. However, speaking at a meeting, the head of the Swiss National Bank (SNB) has said the asset does not currently fit the provisions of a reserve currency.
“We do not believe bitcoin meets the requirements of currency reserves”
According to a Reuters report, SNB Chairman, Thomas Jordan, has said the apex bank does not consider Bitcoin a good option as a reserve currency. The official said this during the organization’s annual meeting on Friday.
Jordan disclosed that purchasing Bitcoin was not an issue for the central bank. He revealed that the bank could gain exposure to the digital asset directly or indirectly. The official noted that should the time come when the bank deems it necessary to add the digital asset to its balance sheets, it can do so quickly. However, Jordan added:
“But from the current perspective we do not believe bitcoin meets the requirements of currency reserves, that’s why we have until now decided not to have bitcoin on our balance sheet.”
It is no secret that Bitcoin adherents see the asset as a great store of value. It is an argument Bitcoin evangelist Michael Saylor has championed severally. As global economies face the threat of rising inflation and a possible recession, proponents like Saylor believe Bitcoin is the only alternative for people seeking to conserve their wealth.
With the geopolitical tensions in Eastern Europe and Putin’s Russia threatening the dollar base by requesting payments for Russian gas in rubles, pundits speculate that we might see countries adopt the number one digital asset by market cap as a reserve currency if the dollar is displaced as the global reserve currency. However, while Bitcoin proponents are thrilled by this prospect, the crypto asset continues to trade like a risk-on asset instead of a store of value like gold.
Crypto Adoption In Switzerland
Despite the statements by the central bank chief, Switzerland remains one of the most friendly crypto destinations ranking 5th in Coincub’s latest assessment. In February 2021, the country passed its crypto law which provides comprehensive regulations for the nascent market, attracting several companies and investors.
Finma, the nascent market’s assigned regulators, is also known to be always ready to communicate clearly and openly with market participants. As a result, the country, best known for its very confidential and professional banking system, appears to have adapted quite well to the digital market and is well on its way to becoming a crypto hub.
Notably, the country’s Canton City of Lugano has already adopted Bitcoin as a legal tender. Bitcoin is down 0.38% in the last 24 hours, still trading around the $38.9k price point, far from its November 2021 all-time high of $69k.