Odaily News Swiss National Bank (SNB) President Martin Schlegel does not want Bitcoin as a reserve asset in Switzerland, citing factors such as lack of stability, liquidity concerns and security risks.
Schlegel told Swiss local media Tamedia on March 1 that Bitcoin and other cryptocurrencies are too volatile to maintain the value of the SNB’s investments. “Secondly, our reserves need to be highly liquid so that they can be used quickly for monetary policy purposes when needed.”
Schlegel also noted that because Bitcoin and cryptocurrencies are run by software, they are inherently susceptible to bugs and technical weaknesses: "We all know that software can have bugs and other weaknesses."
While Schlegel acknowledged that the crypto market secures nearly $3 trillion in value, he said the industry is still a "niche phenomenon" compared to the wider financial system. The SNB president added that he does not think Bitcoin or cryptocurrencies could replace the Swiss franc: "We are not afraid of competition from cryptocurrencies." (Cointelegraph)