The Swiss central bank will not hold BTC as a reserve currency, the president revealed. Speaking recently, the central bank chief said BTC fails to meet the requirements of a reserve currency, even as the bank’s involvement in fossil fuel companies has come into focus.
Swiss National Bank (SNB) President Thomas Jordan has confirmed that the bank has assessed the feasibility of holding BTC and has decided against it, as reported by Reuters.
“Purchase [BTC] is not a problem for us, we can do it directly or buy investment products based on [BTC]. We can arrange the technical and operating conditions fairly quickly, when we are convinced that we must have [BTC] in our balance sheet,” Jordan said at last week’s annual general meeting.
Jordan said that BTC does not meet foreign exchange reserve requirements, and “that’s why we have so far decided not to have bitcoin on our balance sheet.”
The SNB holds more than $950 billion in foreign currency investments, a record it reached this year. It is an aggressive investor in foreign stocks, which occupy about 25% of its reserves, and much more in government bonds. This approach makes it one of the biggest investors in foreign companies, including Facebook and Apple.
During the meeting, protesters swarmed Bern, where the annual meeting was taking place, demanding the bank stop investing in companies contributing to global warming through their high carbon emissions.
“The Swiss National Bank invests billions in the fossil fuel industry every year. In doing so, it generates almost as much CO2 emissions as the whole of Switzerland does nationally,” a protester named Nora Scheel from the Campax group told Reuters.
This opposition would come to a head if the bank adopted BTC as its reserve currency. One of the biggest criticisms of digital currency in recent times has been its energy consumption which has been compared to that of a developed country, higher than Argentina.
BTC is relatively inefficient, with its small block sizes limiting its throughput to just five to seven transactions per second. This translates into very high power consumption for very low output, giving climate change activists all the ammunition they need to make the case against BTC and, by extension, even other digital currencies, even those that are also energy efficient than BSV.
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