European Central Bank Governor Rules Out Cryptocurrency Holdings Due to Volatility Concerns

Swiss National Bank President Rejects Bitcoin Reserves Over Large Fluctuations in Value

The President of the Swiss National Bank, Thomas Jordan, has rejected the idea of holding bitcoin reserves, citing the cryptocurrency's large fluctuations in value. In an interview with the Swiss newspaper, Neue Zürcher Zeitung, Jordan emphasized that the SNB's primary responsibility is to maintain the stability of the Swiss franc and the Swiss financial system, and that bitcoin's volatility poses a significant risk to these goals.

Jordan noted that the SNB has a long history of maintaining a stable currency and financial system, and that the bank's assets are primarily held in traditional assets such as gold, bonds, and stocks. He emphasized that the SNB's investment decisions are guided by a careful analysis of the risks and returns of different assets, and that bitcoin does not meet the bank's investment criteria.

The SNB President also highlighted the lack of regulatory oversight and the potential for market manipulation in the bitcoin market, which he said creates additional risks for investors. Jordan emphasized that the SNB's priority is to protect the stability of the financial system, and that the bank will not consider holding bitcoin reserves until the cryptocurrency's value becomes more stable.

The rejection of bitcoin reserves by the SNB President comes as the cryptocurrency continues to experience significant fluctuations in value. Bitcoin's value has dropped by over 50% in the past month, and many investors are questioning the cryptocurrency's long-term viability.

The SNB's decision not to hold bitcoin reserves is a significant blow to the cryptocurrency's potential as a store of value and a hedge against inflation. The rejection also highlights the challenges that bitcoin and other cryptocurrencies face in gaining mainstream acceptance and adoption.