The Swiss National Bank (SNB) has rejected a proposal to include Bitcoin in its reserves, citing concerns over its volatility.
Swiss Bank Cites Bitcoin Volatility in Reserve Rejection
The Swiss National Bank reaffirmed its position by rejecting the proposal to include Bitcoin in its reserves. Concerns about Bitcoin's volatility and liquidity were key in the decision. SNB's president, Martin Schlegel, emphasized that market volatility does not meet requirements for national reserves.
> "Cryptocurrencies also are known for their high volatility, which is a risk for long term value preservation. In short, one can say that cryptocurrencies for the moment do not fulfill the high requirements for our currency reserves." - Martin Schlegel, President, Swiss National Bank.
Non-impact on Swiss Financial Stability
This decision results in no direct financial impact but fuels skepticism about Bitcoin's reserve status. Investors see continued reliance on traditional assets like gold. Financial experts debate the missed potential of Bitcoin in a multi-polar economy while the Swiss crypto community pushes for a broader diversification strategy.
Central Banks Maintain Cautious Approach to Crypto
Similar to previous central banks' responses, the SNB decision aligns with the global trend of cautious approaches to digital currencies in reserves. Experts predict prolonged debates on digital assets as reserves. Bitcoin's role in emerging economies and institutions remains a focal discussion amid evolving markets.
The Swiss National Bank's decision underscores the current perception of Bitcoin as an unstable asset, reinforcing central banks' caution regarding cryptocurrencies.
