The president of the Swiss National Bank highlighted that they have zero problems with Bitcoin, but they do not consider that the digital currency has what it takes to become a reserve currency.
Thomas Jordan, the current President of the Swiss National Bank (SNB), highlighted that the entity has zero intention of keeping reserves in Bitcoin precisely because the digital asset does not comply with the provisions issued by the agency to get considered a reserve asset.
The official also noted that this is not a definitive outlook, so if they change their minds, they would see no problem in starting to acquire the asset.
Swiss National Bank has no Intentions to hold Reserves in Bitcoin
The statements of the president of the SNB took effect during the annual meeting carried out by the organization. There, Jordan highlighted that the bank does not think that Bitcoin would represent a good alternative as a reserve currency, mainly because its features do not yet make it an asset conducive enough to meet these purposes.
In this regard, Jordan also expressed that this is not a definitive stance for the bank, so if they change their minds, the SNB will start purchasing Bitcoin or having greater exposure to the digital asset directly or hint.
These comments arrived amid extraordinary economic struggles between many powerful economies worldwide, which are facing a growth in inflationary levels due to the effects left by the COVID-19 pandemic that got extended during these last two years and the current international panorama.
Many enthusiasts expose the importance of the world’s economies considering the idea of keeping Bitcoin reserves, especially amid threats of rising inflation and possible Recession. They also highlighted a potential armed conflict that transcends the borders of Ukraine amid the stance that Russia is holding against the nations against it.
Switzerland and its Friendly stance Toward Bitcoin
Although it is clear that the SNB has no intentions to protect part of its assets in Bitcoin, this does not mean that the entity has a lousy position towards the digital asset.
Switzerland ranks as one of the friendliest nations toward BTC and digital assets in general, as it has adapted procedures so that residents and companies can better carry out financial activities with digital assets at the local and regional levels.
Recession Impacts on Bitcoin
The economic contraction data presented various concerns about the imminent attack of an economic recession worldwide. As CNBC points out, the generally accepted definition of an economic recession relies on two subsequent quarters of negative decline for a country’s gross domestic product.
While the report’s release did not seem to have a specific impact on the markets, the possibility of a recession could impact the prices of Bitcoin and other digital assets in the medium term. Bitcoin costs still linger below $40,000 amid what seems to be a quiet downtrend in the digital market.
By: Jenson Nuñez
