The chairman of the Swiss National Bank (SNB), Thomas Jordan, secretly stated his doubts about owning Bitcoin as part of the review of currency reserves during the bank’s annual general meeting.Â
Jordan highlighted the concerns with liquidity, sustainability, and the environmental impact of the Proof-of-Work model, arguing that these issues make such investments too risky.
Jordan reiterated the role the reserves play in international settlements and said that they need to be easily convertible to corresponding currencies and sound in their operations. He explained that the high energy consumption of cryptocurrencies like bitcoin could pose a sustainability challenge, which is increasingly important in designing and managing reserves.
The chairman’s observation implies the conservative views related to crypto and practical approach which is instrumental to the central bank’s monetary strategy.
Although Jordan is hesitant, a group led by Yves Bennaïm suggests a constitutional amendment to include bitcoin among the reserves together with gold at the Swiss National Bank. Luzius Meisser, another campaigner, argued that the SNB’s current investment portfolio was not adequate and that bitcoins had a better prospect of offering higher returns.
Also Read: Bitcoin Advocates Urge Swiss Central Bank to Add BTC
