The Swiss National Bank has no problem with making Bitcoin a reserve currency. The Chairman of the bank, Thomas Jordon, said they could arrange the technical and operative conditions quickly once convinced of the need to add BTC to the balance sheet. It is a massive deal for the industry as not opposing Bitcoin means they will sooner or later come around to adopting it.
Swiss National Bank on Bitcoin
Buying Bitcoin is not a problem for the bank if they meet the reserve currency requirements of the bank. They can make direct investments in BTC or buy products that are indirectly linked to it. While this is great, the bank says, for now, Bitcoin hasn’t met its requirements, and hence it’s not on their balance sheet. So, let’s see if the bank comes around to the subject in 2022 or 2023.
What is a reserve currency?
A reserve currency is a substantial amount of money held by central banks and other big financial institutions in order to prepare for investments, transactions, and foreign debt commitments, as well as to affect their local exchange rate. Because a major portion of commodities, such as gold and oil, are valued in the reserve currency, other countries must hold this currency in order to pay for these things.
Bitcoin is no longer a Ponzi scheme
During the 2017-18 bull run, all the major banks that are offering Bitcoin trading services today called it a Ponzi. At the time, no one would have, even though some countries would adopt it as a legal tender. First, El Salvador, Second Central African Republic, and Thirdly Panama have now passed bills to adopt BTC as legal tenders. Prominent investors like Robert Kiyosaki have also been talking about the need to invest in Bitcoin. Countries are bringing laws that support the crypto industry and help them become a leader in the space. Bitcoin has come a long way in the past 10 years and I believe in the next 10, it will tighten its position in the world.
What are your thoughts as Swiss National Bank says it has no problem with making Bitcoin a reserve currency? And do you think BTC will soon meet its requirements? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.