tl;dr
The head of the Central Bank of Switzerland, Martin Schlegel, is reportedly skeptical about holding Bitcoin (BTC) as a reserve asset. He cites concerns about volatility, liquidity, and security of digital assets, stating that they do not meet the requirements of solid currencies. Schlegel questions ...
The President of the Swiss National Bank, Martin Schlegel, has expressed skepticism about holding Bitcoin as a reserve asset. He has raised concerns about the volatility, liquidity, and security of digital assets, stating that they do not meet the requirements of solid currencies. Schlegel questions the feasibility of using crypto assets for long-term investments and as part of the bank's reserves due to their volatility and illiquidity. He also has doubts about the security of the blockchains underpinning crypto assets.
Despite the proposal for Switzerland to hold Bitcoin as a reserve asset, Schlegel emphasizes that the digital asset industry is still relatively small compared to traditional currencies. He further notes that the Swiss franc is performing well compared to other currencies, indicating that the bank is not worried about competition from cryptocurrencies.
The Swiss National Bank President, Martin Schlegel, is reportedly against using Bitcoin as a reserve asset due to concerns about volatility, liquidity, and security. He believes that crypto assets do not meet the requirements solid currencies should have and are too volatile for long-term investments and too illiquid to be in the bank’s reserves. Additionally, he questions the security of the blockchains underpinning crypto assets. Schlegel also points out that the digital asset industry is still relatively small and the Swiss franc is performing well relative to other currencies, indicating that the bank is not afraid of competition from cryptocurrencies.