The Swiss National Bank (SNB) has taken a definitive stance against including cryptocurrencies in its financial portfolio, citing concerns over liquidity and price volatility. During a recent assembly, SNB President Martin Schlegel highlighted the risks these factors pose during economic crises, prompting them to adopt a cautious approach to investment strategy. 🇸🇨
While acknowledging the potential benefits of digital assets, the SNB believes that the inherent high volatility of cryptocurrencies makes them unsuitable for their reserves. Mr. Schlegel stated, “The inherent high price volatility of crypto assets poses risks for long-term value storage. We believe it does not fit our reserves under the current conditions.” 📈
In contrast, advocates for Bitcoin argue that a small allocation to cryptocurrencies could boost the Swiss treasury’s returns. Simulations suggest even a modest 1% investment in crypto could deliver significantly better results compared to traditional investments. 🧐
However, other central banks like the European Central Bank (ECB) have voiced concerns about the risks associated with cryptocurrencies. Concerns include their vulnerability to liquidity and security threats, as well as potential links to criminal activities. 🌎
The SNB’s stance reflects a global trend in financial policy discussions, with a focus on risk management while acknowledging the potential for high returns in the cryptocurrency market. 📈 💸