Swiss National Bank President Thinks Bitcoin Won’t Change Financial Policies, But Praises Blockchain
Bitcoin (BTC) and cryptocurrencies have been growing during the last years. However, financial institutions have been avoiding them. However, since Bitcoin reached its all-time high back in 2017, some comapnies and firms started to pay close attention to it.
Bitcoin could eventually be embraced by people and firms as a store of value or a means of payment. Although the virtual currency has expanded everywhere around the world there are individuals and companies that are against this digital asset. This is the case of JP Morgan’s CEO Jamie Dimon or Nouriel Roubini, NY Professor.
Thomas Jordan, the President of the Swiss National Bank has also given his opinion about the cryptocurrency market and Bitcoin during a meeting in Davos. According to a recent article published by Bloomberg, Jordan mentioned that he does not believe that cryptocurrencies are going to change policy making among central banks and governments.
About it, he commented:
“As long as we have influence on the value of this unit of account, so the change of interest rates, the change of the size of the balance sheet, the exchange rate, etc., the power of monetary policy will remain.”
He has also remained sceptical about the benefits of digital assets, even when central banks are already thinking about creating Central Bank Digital Currencies (CBDCs). Nevertheless, he explained that if central banks start using digital currencies, this would have a deep impact on how the current financial system is working.
Switzerland is one of the most open countries towards digital assets in the world. The government has been trying to attract companies in the space to invest in the country. Switzerland, as well as Malta, have a clear legal framewrok for virtual currencies and blockchain technolgoy to allow companies grow in their territories.
Nevertheless, banking institutions have been reluctant to start working with these firms. In some cases, banks do not want to provide services to companies and firms working in the cryptocurrency industry. Another country that had some issues with banks not offering services to individuals and companies was Chile.