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Bitcoin [BTC] and other cryptocurrencies will not lead to change in monetary policy, says President of Swiss National Bank




Bitcoin [BTC] and other cryptocurrencies not a major hurdle for monetary policy, says President of Swiss National Bank
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The whole cryptocurrency has been under the radar of all the government and financial service providers across the globe ever since Bitcoin [BTC] and other cryptocurrencies hit their all-time high. Since then, the currency has been either accepted or dismissed by key market makers.

Moreover, Bitcoin [BTC], the largest and the very first cryptocurrency in the world, was declared a store of value and rose to fame as digital gold. Even the U.S Securities and Exchanges Commission [SEC]’s commissioner, Hester Peirce stated that Bitcoin [BTC] and other cryptocurrencies do indeed have similarities to gold.

To add on, financial behemoths such as Goldman Sachs and Nasdaq were quick to act on the new emerging technology. In 2018, news erupted that Goldman Sachs will be rolling out its own Bitcoin [BTC] derivates trading facility for its clients.

Nonetheless, there are still well-known players in the trading markets that stand against the prosperity of the cryptocurrency market. This includes the likes of Nouriel Roubini aka Dr. Doom, an American economist known to have predicted the 2008 financial crisis, and Jamie Dimon, CEO of JPMorgan Chase, who went on to claim that Bitcoin is fraud.

Earlier today, Thomas Jordan, President of Swiss National Bank, also gave his perspective on the king of the cryptocurrency market, Bitcoin, during a discussion in Davos. The President stated that he does not see cryptocurrencies leasding to a major change in policy making. However, Jordon did appreciate the use case of the technology underlying the currency, Blockchain. According to Bloomberg, he stated:

“As long as we have 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.”

Additionally, the President had expressed his doubts on the benefits of cryptocurrencies even though the digital currencies market gained a lot of traction from central banks across the globe. Along with this, Thomas Jordan does see the need for regulatory bodies to issue its own digital currency. In the report by Bloomberg, he was noted stating:

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

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

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