Bitcoin does not meet foreign exchange reserve requirements

Swiss National Bank (SNB) President Thomas Jordan has revealed that the bank has decided not to have the world’s largest cryptocurrency on its balance sheet. At the same time, however, the organization is to some extent thinking about digital currencies.

Bitcoin, not yet

At the central bank’s annual general meeting on Friday, the president said the SNB does not believe Bitcoin meets the foreign exchange reserve requirements from the current perspective. Adding BTC to its balance sheet is not a problem for SNB, according to Jordan, but will only do so when they are fully convinced.

According to the Reuters report, Jordan said,

“Buying bitcoin is not a problem for us, we can do it directly or buy bitcoin-based investment products. We can arrange the technical and operational conditions relatively quickly when we are convinced that we must have bitcoin in our balance sheet.

Importantly, Switzerland has managed to establish itself as one of the most crypto-friendly countries and currently has the most profitable Bitcoin traders in the world.

Compiling data from Chainalysis, Invezz found that the Central European country has the highest earnings per investor at $1,268. Moreover, its southern city of Lugano earlier announced its intention to integrate Bitcoin, Tether and LGV into its legal payment alongside the Swiss franc as part of the ambitious “Plan ₿” that will allow its 62,000 citizens to pay utility charges or taxes in those countries. currencies.

Getting started with central bank digital currency

Switzerland has also been exploring CBDCs since at least 2019. After initially dismissing reports of planning a digital currency, the SNB informed that the launch of a wholesale central bank digital currency (wCBDC) is expected in January. next year via the country’s new Six license. Digital Exchange (SDX).

Although the launch remains a political decision, the central bank, along with five commercial banks – Citigroup Inc, UBS Group AG, Goldman Sachs Group Inc, Credit Suisse Group AG and Hypothekarbank Lenzburg AG – have reportedly conducted a trial to determine whether they can process CBDCs within the national financial network. The trail was part of an experiment known as “Project Helvetica”.

Featured image courtesy of central bank


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