Swiss National Bank President Says Stablecoins Could Hamper Policy

  • Swiss National Bank (SNB) President Thomas Jordan said that stablecoins pegged to foreign currencies could hamper Switzerland’s monetary policy in some circumstances.

    Cryptocurrencies’ limited use as payment instruments
    On Sept. 5, Jordan spoke at the University of Basel, saying that he is convinced that cryptocurrencies are of limited use as payment instruments, stores of value and units of account, as they are subject to major fluctuations. Jordan went on to say:

    “Crypto tokens are more like speculative investment instruments than ‘good’ money in terms of their characteristics. Users typically describe money as ‘good’ if it has a stable value over time, is broadly accepted, and enables efficient payments. Given these parameters, it seems unlikely that crypto tokens will be widely used as money in Switzerland.”

    Jordan further expressed his concerns in regard to stablecoins pegged to foreign currencies establishing themselves in Switzerland. He explained:

    “If stable coins pegged to foreign currencies were to establish themselves in Switzerland, the effectiveness of our monetary policy could be impaired.”

    The central banker added that a Swiss franc stablecoin would have “no immediate impact on the effectiveness of our monetary policy,” but also said that giving the general public access to a central bank-issued digital currency could pose a threat to financial stability by increasing the likelihood of a bank run.

    Swiss National Bank keeps a close eye on Facebook’s Libra
    As Cointelegraph previously reported, the central bank is in close contact with the relevant authorities over Facebook’s Geneva-based crypto project Libra. SNB vice-chairman Fritz Zurbruegg said that it was still difficult to analyze the Libra project fully, citing the vague character of available documentation.

  • As limited as they think cryptocurrencies are in terms of use, they're still going strong as a form of investment.

  • They may be limited now, but things can change.

  • Well, Libra isn't out yet. Doubt they'll reveal much yet.

  • “Crypto tokens are more like speculative investment instruments than ‘good’ money in terms of their characteristics."

    Well, any kind of investments can be taken that way.

  • Well, it wouldn't really be attractive if they were too stable. There are many high risk high return kind of people out there waiting to make a quick buck.

  • @elixir True. But seeing the nature and how it started, it's not hard to see why it's seen more as speculative than the traditional stock.

  • @pokemon Oh yeah. Things may appear stagnant for now, but nothing stays the same way.

  • @hola55 Yes, they are. And they will grow even bigger and stronger. Or at least that's what I see based on today's digital age.

  • Many parties seem to have their eye on Libra.

  • @harrypotter It's all about the investors and the type of investments or method they prefer.

  • @harrypotter We may stand on this side of the spectrum, but others see it some other way.






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