Head of Swiss Central Bank Opposes Holding Bitcoin Reserves, Citing Volatility, Liquidity and Security Weaknesses: Report – The Daily Hodl

The head of the Swiss Central Bank is reportedly skeptical of holding Bitcoin (BTC) as a reserve asset.

According to the new one Report President Martin Schlegel of the Swiss National Bank (SNB) is opposed to using BTC as a reserve asset for volatility, liquidity and security.

Schlegel said digital assets do not meet the requirements that solid currencies should have. He believes crypto assets are too volatile and advantageous for long-term investments, and too ineffective to fall into bank reserves.

He also questioned the security of the blockchain that underpins crypto assets, saying that it could encounter bugs or have “weaknesses.”

Switzerland's proposal to hold Bitcoin as a reserve asset was first It was introduced Last December. The initiative, entitled “For a financially strong, sovereign and responsible Switzerland (Bitcoin initiative),” asked SNB to build currency reserves from BTC and gold revenues.

Schlegel continues, saying that SNB considers the digital asset industry to remain a phenomenon under the radar in the grand scheme of things, pointing to a relatively small $3.08 trillion market capitalization.

Executives are even more focused on the fact that banks are “not afraid to compete with cryptocurrencies” as the Swiss franc, where SNB is entrusted with protecting, is doing better than other currencies.

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