Swiss National Bank Has No Bitcoin As Reserve Currency, But That Could Change SoonMay 1, 2022 7:19 pm
Swiss National Bank, which is Switzerland’s central bank, just revealed that the bank operationally ready to add BTC as a reserve currency, but just has not decided to do so yet.
The bank explains that it is actually relatively easy for the bank to do and that all it really needs is to just confirm that Bitcoin will indeed be added to the balance sheet.
So far, in order for the bank to hold an asset as a reserve currency, it must meet the bank’s currency reserve requirements.
In the past, the bank has mentioned that the bank did not consider Bitcoin to be able to meet the requirements, but it seems that recent events in the crypto world may soon change that in the near future.
— S O H E i L (@Soheil_SBabaei) May 1, 2022
However, he noted: “But from the current perspective we do not believe bitcoin meets the requirements of currency reserves. That’s why we have until now decided not to have bitcoin on our balance sheet.”
Nonetheless, he stressed:
We can arrange the technical and operative conditions relatively quickly, when we are convinced we must have bitcoin in our balance sheet.
A growing number of corporations are holding bitcoin on their balance sheets while more countries are establishing a framework to make BTC a legal currency.
El Salvador adopted bitcoin as legal tender alongside the U.S. dollar in September last year, and recently the Central African Republic made the crypto an official currency.
Many within the crypto community also have opinions regarding fiat currencies and whether or not the USD would start to lose its dominance given the recent geo-political tensions which have caused investors to look for alternative storages of wealth.
Prominent investors like Robert Kiyosaki, author of Rich Dad Poor Dad, has also warned about the potential for the USD to lose some of its reserve power as the crypto industry continues to grow.
Currently, the Swiss National Bank has a diverse portfolio of reserve assets with the USD still accounting for the majority of the portfolio.
Some are speculating about Chairman Thomas Jordan’s comment which mentioned that the bank could move quickly if needed and think that this might be a potential clue of what is to come although it neither confirmed nor denied anything at this point.
"We do not believe #bitcoin meets the requirements of currency reserves, that's why we have until now decided not to have bitcoin on our balance sheet,"
– Thomas Jordan, Swiss National Bank#Bitcoin is the perfect reserve asset 🤨
— Priced in ₿itcoin ∞/21M (@PricedinBTC) April 30, 2022
According to an annual report published in March, the SNB’s reserves as of Dec. 31, 2021, came to just over CHF1 trillion (US$1.03 trillion).
The U.S. dollar accounts for 39% of reserves, the euro 37%, Japan’s yen 8% and the U.K.’s pound 6%. Gold holdings were just shy of CHF56 billion, or less than 6% of reserves.
While bitcoin today doesn’t meet norms for currency reserves, said Thomas Jordan, there’s no technical bar to purchases.
The Swiss National Bank (SNB) isn’t currently interested in holding bitcoin (BTC), but could move quickly to do so at some point, said Chairman Thomas Jordan.
Based on the history of various institutions and government entities, many often take action before publicly releasing their reports.
Some are hopeful that this could spell good news for Bitcoin and the rest of crypto in the near future.
— 🇺🇦🌻🇺🇦🌻🇺🇦🌻🇺🇦🌻🇺🇦🌻🇺🇦🌻🇺🇦🌻🇺🇦🌻 (@_Cryptosopher_) April 30, 2022
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