The head of the Swiss National Bank (SNB), Thomas Jordan, indicated his worries about owning Bitcoin as part of the evaluation of currency reserves during the bank’s annual general meeting.
Jordan highlighted the significance the reserves play in international settlements and said that they ought to be easily convertible to matching currencies and sound in their operations. He added that the high energy usage of cryptocurrencycurrencies like bitcoin could represent a sustainability concern, which is increasingly crucial in constructing and managing reserves.
Jordan highlighted the challenges with liquidity, sustainability, and the environmental impact of the Proof-of-Work paradigm, stating that these issues make such investments extremely risky.
Although Jordan is skeptical, a group led by Yves Bennaïm seeks a constitutional modification to include bitcoin among the reserves associated with gold at the Swiss National Bank. Luzius Meisser, another advocate, said that the SNB’s present investment portfolio was not appropriate and that bitcoins had a better possibility of generating higher returns.
The chairman’s assessment signifies the conservative ideas related to cryptocurrency and practical approach which is important to the central bank’s monetary strategy.
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