As a researcher with a background in finance and sustainability, I find Thomas Jordan’s cautious stance on Bitcoin as part of the Swiss National Bank’s reserves intriguing. His concerns about liquidity, sustainability, and environmental impact are valid and reflect a practical approach to managing the bank’s reserves.
During the Swiss National Bank (SNB) annual general meeting, Chairman Thomas Jordan expressed his reservations about investing in Bitcoin in a discreet manner. He raised concerns over several aspects, including the lack of liquidity and sustainability, as well as the significant environmental impact of the Proof-of-Work model used by the digital currency. Jordan concluded that these challenges make such an investment too risky for the bank.
Jordan emphasized once more the significance of reserves in international financial transactions and highlighted the necessity for them to be quickly exchangeable into corresponding currencies and efficiently managed. He brought up the concern that the substantial energy usage of cryptocurrencies such as bitcoin might pose a sustainability issue, which is growing in relevance when it comes to managing and setting up reserves. The chairman’s perspective on this matter reflects a cautious stance towards cryptocurrencies and a pragmatic approach that aligns with the central bank’s monetary tactics.
Despite Jordan’s reservations, a team headed by pro-crypto Yves Bennaïm proposes amending the Swiss constitution to allow bitcoin inclusion in the country’s reserves alongside gold at the Swiss National Bank. Luzius Meisser, another advocate, maintains that the SNB’s existing investment portfolio falls short and suggests that bitcoins may yield superior returns.
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2024-04-27 04:37