In an interview with the Tamedia media group, Schlegel outlined three key reasons why cryptocurrencies should not be part of the SNB’s reserves. First, he highlighted the high volatility of digital assets, which makes them unsuitable for preserving long-term value.

“Our reserves must also be highly liquid so they can be deployed swiftly for monetary policy operations if necessary,” Schlegel noted. He further emphasized the security risks inherent to digital assets, pointing out: “Software-based systems are prone to bugs and vulnerabilities.”

Bitcoin Reserve Initiative Sparks Debate

Schlegel’s comments come as Switzerland faces an ongoing debate over a constitutional amendment aimed at reshaping the country’s financial strategy. Launched in December, the proposal suggests that the SNB should hold Bitcoin alongside gold in its reserves.

Entrepreneur Yves Bennaim, who leads the initiative, proposes that Bitcoin holdings be gradually accumulated from the central bank’s profits. The campaign now has 18 months to collect 100,000 signatures to qualify for a national referendum.

Switzerland Embraces Crypto, But SNB Stays Cautious

While many Swiss banks have begun offering customers cryptocurrency-related services, Schlegel still describes the asset class as a “niche phenomenon.” Speaking to Tamedia, he stated that currencies have always competed with each other and that the Swiss National Bank is “not concerned about competition from cryptocurrencies.”
Schlegel also reaffirmed the enduring strength of the Swiss franc in global markets.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Swiss National Bank President: Bitcoin Is Not Fit for Reserves appeared first on Coin Engineer.

You might like: Stars Arena Eliminates FUD by Closing Security Vulnerability!

Denis Beau, the First Deputy Governor of the Banque de France ( French Central Bank ), identified two valid paths for CBDC development. Firstly, creation of common standards between wholesale CBDCs and existing systems and ensuring their compatibility. Secondly involves the creation of regional or global CBDC platforms supported by the International Monetary Fund (IMF) and the International Bank for Bills (BIS). Standardization of wholesale CBDCs allows them to be directly exchanged on these platforms and allows payment and delivery transactions.

Beau cited Project Mariana as an example and stated that the project, which explored the capabilities of the automatic market maker (AMM), successfully concluded. Additionally, Beau mentioned that they, in collaboration with the Monetary Authority of Singapore and the Swiss National Bank, successfully completed this project in late September.

In addition to CBDCs, Beau discussed the tokenization of finance. He emphasized the importance of more public sector support for the private sector to realize the full potential of blockchain and to limit the risks arising in this process. According to Beau, tokenized central bank money and tokenized assets are complementary allies, not competitors, in the evolving financial landscape.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’ t forget to follow us on our Telegram, YouTube and Twitter channels for the latest news.

The post French Central Bank Praises CBDC! appeared first on Coin Engineer.