The head of the Central Bank of Switzerland is said to be skeptical about keeping Bitcoin (BTC) as a reserve.
According to a new report from Swissinfo, Martin Schlegel, president of Swissinfo, the Swiss National Bank (SNB) against the use of BTC as a spareboard, is because of volatility, liquidity and safety.
Schlegel says that digital assets do not meet the requirements that solid currency should have. He believes that crypto assets are too volatile to be beneficial for long-term investments and too Illiquide to be in the bank’s reserves.
He also asks the security of the block chains that underlie Crypto assets, and says that they encounter insects or have ‘weaknesses’.
The proposal for Switzerland to keep Bitcoin if a reserve resistant was first introduced in December. The initiative, entitled “For a financially strong, sovereign and responsible Switzerland (Bitcoin Initiative)” called for the SNB to build currency reserves from his income with BTC and Gold.
Schlegel also says that the SNB believes that the digital asset industry is still a phenomenon under the radar in the large schedule of things, pointing to the relatively small market capitalization of $ 3.08 trillion.
The executive also notes that the Swiss Frank – who has to protect the SNB – is doing well with regard to other currencies and so the bank is “not afraid of competition from cryptocurrencies.”
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