Jordan said that the SNB does not plan to keep reserves in Bitcoin as it does not comply with their provisions. However, Switzerland occupied 5th place among the friendliest destinations for cryptocurrencies in the first quarter of 2022.
Thomas Jordan from the Swiss National Bank (SNB) recently said they oppose buying and holding Bitcoin as a reserve currency. The Swiss economist and banking supervisor is the chairman of the governing board of the financial institution.
Jordan is also a member of the Bank for International Settlements (BIS) and chair of the Central Bank Counterfeit Deterrence Group.
The economist pointed out that the Swiss National Bank does not plan to keep reserves in Bitcoin. The financial agency does not consider the pioneering cryptocurrency a reserve currency as it does not comply with their provisions.
A recent annual report indicates the reserves of the SNB until December 31st amounted to just over USD 1.03 trillion. The funds of the bank are in US dollars (39%), euros (37%), yen (8%), and pounds sterling (6%).
The SNB May Buy Bitcoin in the Future
International news agency Reuters recently reported that the SNB does not consider Bitcoin a good option as a reserve currency. Its chairman, Thomas Jordan, stated that the financial institution is not interested in Bitcoin but might invest in it at some point.
Jordan commented that buying Bitcoin is not a problem, as they could do it directly or through investment products based on it. He explained that they could fix the technical and operational conditions when they believe they must have Bitcoin on their balance sheet.
Curiously, Jordan also said that they currently do not believe that Bitcoin meets the requirements for foreign exchange reserves.
Despite the statements by Jordan, Switzerland is still one of the friendliest destinations for cryptocurrencies. It occupies 5th place in the ranking for the first quarter of 2022, according to crypto exchange aggregator Coincub.
Some Reasons for the SNB Not to Invest in Bitcoin
The Swiss National Bank has stated that they do not invest in companies that harm the environment through their carbon emissions.
However, Nora Scheel from the group Campax highlighted that the financial institution invests billions in the fossil fuel industry every year. The lawyer believes that, in that way, they generate almost as much CO2 as the entire of Switzerland.
Jordan said that the SNB has over USD 937 billion in foreign currency investments. He also explained that they had reduced their investment in energy and fossil fuel companies from 10% to around 3%.
He argued that they could not sell all their shares, as somebody else could buy them. He expressed that the idea was to transform the economy by producing lower levels of CO2 emissions.
The chairman of the SNB said that they should do it in a systematic and orderly manner. He noted that they are experiencing a problem with energy supply, with rising prices that affect people with low incomes.
Bitcoin plays a crucial role in the economy, which the governments of various countries do not overlook. However, many regulators still see the cryptocurrency as a threat to the environment despite studies showing that other industries emit more CO2.
