Swiss National Bank chairman rebuffs bitcoin as reserve asset
BERN, April 25 (Reuters) - The head of the Swiss National Bank said on Friday that cryptocurrencies failed to meet the institution's currency reserve standards, rebuffing calls by crypto advocates that it hold bitcoin as a hedge against growing global economic risks.
Cryptocurrency campaigners are ramping up pressure on the SNB to buy bitcoin, arguing that the economic turmoil triggered by U.S. President Donald Trump's tariffs made it more important for the central bank to diversify its reserves.
They have launched a referendum campaign to change the Swiss constitution and require the SNB to hold bitcoin in its reserves alongside gold.
SNB Chairman Martin Schlegel, however, rejected the idea at the central bank's shareholder meeting in Bern.
"Cryptocurrency cannot currently fulfil the requirements for our currency reserves," he said.
Market liquidity was one concern, he said, as the central bank needed at all times to be able to buy and sell foreign exchange.
Cryptocurrencies also typically exhibit "very, very high" fluctuations in value, Schlegel said, which raised doubts about their ability to maintain the value of the SNB's currency reserves.
Schlegel's comments came after Luzius Meisser - a founder of the Bitcoin Initiative, which is pushing for the referendum - told the meeting that bitcoin was a "special asset" and a valuable alternative to traditional government debt.
"I have to admit it might not be worth much in scenarios that most of you consider normal," he said. "However, bitcoin will be worth a lot in the specific scenario of a multipolar world order with fading trust in government debt."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
an hour ago
- BBC News
Trump administration blocked from deploying National Guard to LA
A federal judge has said the Trump administration cannot deploy California's National Guard troops to Los judge's order to return control of the troops to California Governor Gavin Newsom will not go into effect immediately, giving the administration time to respond. The state sued President Donald Trump on Monday over his order to deploy the troops without Gov Newsom's consent. Trump said he was sending the troops - who are typically under the governor's authority - to stop LA from "burning down" in protests against his immigration authorities have argued they have the situation in hand and do not need the National Guard. This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest can receive Breaking News on a smartphone or tablet via the BBC News App. You can also follow @BBCBreaking on X to get the latest alerts.
Reuters
an hour ago
- Reuters
Dollar and other safe havens rise as Israel strikes Iran
June 13 (Reuters) - The U.S. dollar rallied alongside the safe-haven Japanese yen and Swiss franc, with currency markets abruptly reversing direction on news Israel had launched strikes on Iran. Israel has begun carrying out strikes on Iran, two U.S. officials told Reuters, adding that there was no U.S. assistance or involvement in the operation. Another report suggested that explosions were heard northeast of Iran's capital Tehran. An index that measures the dollar against six other currencies gained 0.4%, and was last at 98.07, in early Asia trading. Against the yen, the dollar slipped 0.35% to 143 per dollar , while the Swiss franc tumbled 0.39% to 0.807 per dollar. Risk-sensitive Asian currencies such as the Aussie dollar and the New Zealand dollar weakened 0.9% each. Earlier in the week, the dollar index hit multi-year lows as investors were not impressed by a U.S.-China trade truce, while cooler-than-expected inflation data fuelled expectations of more aggressive interest rate cuts by the Federal Reserve. The dollar is on track for weekly declines against the yen, the Swiss franc and the euro. Crude prices , jumped more than $4 on the news as investors priced in potential supply disruptions from the oil-rich region, while gold prices climbed 0.8% to their strongest since early May.
Daily Mail
an hour ago
- Daily Mail
Trump declares all illegal migrants 'have to go home' before they turn US into 'bankrupt Third World Nation' as he praises 'hero' ICE agents
President Donald Trump has demanded that all illegal migrants go home immediately to avoid turning America into a 'bankrupt Third World Nation.' Trump doubled down in his support for ICE agents conducting the controversial raids as protesters take to the streets across America rallying against the administration's mass deportation agenda. 'The Biden Administration and Governor Newscum flooded America with 21 Million Illegal Aliens, destroying Schools, Hospitals and Communities, and consuming untold Billions of Dollars in Free Welfare,' he wrote in a Truth Social post on Thursday. 'All of them have to go home, as do countless other Illegals and Criminals, who will turn us into a bankrupt Third World Nation. 'Our courageous ICE Officers, who are daily being subjected to doxxing and murder threats, are HEROES.' According to a House Budget Committee report in late 2024, the border crisis costs American taxpayers at least '$150billion and counting.' 'The lion's share of that cost is borne by state and local governments,' the committee found. 'State and local governments can't borrow or print money like the federal government, so they have to balance their budgets by either absorbing this cost through raising taxes or they have to cut services to their citizens.' Trump described the work ICE agents are conducting as a 'noble mission' and vowed to 'always have their back' as they continue to track down and round up migrants. 'America will be for Americans again,' Trump vowed. 'America was invaded and occupied. I am reversing the Invasion. It's called Remigration.' While Trump is wholeheartedly backing the work of his ICE agents, he presented a softened tone earlier on Thursday about migrants who have long term employment on farms. He acknowledged that farmers 'and people in the Hotel and Leisure businesses' have been vocal in their criticism for his sweeping arrests. 'Our very aggressive policy on immigration is taking very good, long time workers away from them, with those jobs being almost impossible to replace,' he said. Trump said at a press conference 'our farmers are being hurt badly by, you know, they have very good workers, they have worked for them for 20 years. 'They're not citizens, but they've turned out to be, you know, great. And we're going to have to do something about that. 'We can't take farmers and take all their people and send them back because they don't have maybe what they're supposed to have, maybe not.' Trump said he would be issuing a new order relating to that specific matter 'soon', vowing to use 'common sense' to protect industries which have become reliant on a migrant workforce. But Trump blamed Biden for allowing 'criminals' to apply for farm jobs in the first place and said while he wants to protect farmers, his priority remains getting 'the criminals out of the USA.' These comments echo sentiments made back in April during a cabinet meeting, when Trump said: 'If they have strong recommendations for their farms, for certain people, we're going to let them stay in for a while. 'Work with the farmers, and then come back and go through a process, a legal process, but we have to take care of our farmers.' Trump and ICE have ramped up their searches for undocumented migrants, taking to workplaces across the nation in the last week which are suspected of employing illegal workers. This set off the riots in Los Angeles which have stretched into their sixth day, sparking lockdown orders and the deployment of 700 Marines and 4,100 National Guard troops. Rioters set fire to cars, looted buildings and attacked authorities as they railed against the arrests of their neighbors. Protests have spread throughout the nation too, popping up in New York, Texas, Arizona and Chicago as authorities' resources are spread thin trying to maintain order. And there are fears the worst is yet to come with 2,000 separate protests planned for Saturday. More than one million people are expected to take to the streets across the nation to coincide with Trump's military parade celebrating the Army's birthday - which also happens to fall over the weekend of Trump's 79th birthday. Trump has ordered state officials to come down hard on protesters. In Republican states like Texas and Missouri, authorities have requested help from the National Guard to ensure law and order. In Florida, Sheriff Wayne Ivey laid down the law with a chilling warning that his officers 'are not gonna play' while policing protests. 'If you throw a brick, a firebomb, or point a gun at one of our deputies, we will be notifying your family where to collect your remains at. Because we will kill you, graveyard dead,' he said. 'If you resist lawful orders, you're going to jail,' he said. 'If you block an intersection or a roadway, you're going to jail. 'If you flee arrest, you're going to go to jail tired, because we are going to run you down and put you to jail. 'If you try to mob roll a car... gathering around and refusing to let the driver leave, in our county you're most likely going to get run over and dragged across the street. 'If you spit on us, you're going to the hospital, and then jail. If you hit one of us, you're going to the hospital, and then jail, and most likely bitten by one of our big, beautiful dogs here.' But in Democrat states, led by California, authorities are less inclined to turn to Trump for assistance. California Governor Gavin Newsom has been locked in a bitter war of words with the president amidst the chaos, insisting that Trump's deployment of troops had only spurred on the violence. 'Trump is turning the US military against American citizens,' Newsom warned. 'Democracy is under assault before our eyes, this moment we have feared has arrived.' But Trump argued he is protecting citizens of California from violent insurrectionists and insists Newsom's weakness has allowed the crisis to fester.
