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Cryptocurrencies are More like Assets and Not Currency, says Swiss Central Bank at WEF 2019

During a World Economic Forum in Davos, Switzerland on Wednesday, Swiss National Bank President speaks about crypto assets and said it’s not a currency.

Swiss Central Bank Raising Eyebrows

Every discussion on the growth of cryptocurrency comes with ‘regulation’ at its core. In a similar context, WEF conference (organized for Jan 22 and 25, 2019) gathered the most prominent leaders from fintech and other industries. Speaking at the panel, Mr. Jordan says that he doesn’t really see crypto assets as currency. He states;

“These cryptocurrencies as we know them at the moment are more like assets, not really like currency. As long as we have an 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,”.

However, it has seen that the regulators often uncertain about cryptocurrency and its global revolutions. In fact, a recent report indicates that many of such banks don’t see benefit from the cryptocurrencies thus not intending to issue their own. Concerning the similar view, Mr.Jordan further notes that the launch of such digital assets isn’t necessary for policymakers at the moment.

“If central banks really start issuing digital currencies, that will a big have an impact on the functioning of the financial system,” he continued

What do you think about Jordan’s statement? share your thoughts.

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