Swiss National Bank president doesn't see cryptocurrencies replacing the franc

24 Jan, 2019 | Updated: 24 Jan, 2019
by Richard Allen
News
Swiss National Bank president doesn't see cryptocurrencies replacing the franc

Speaking during a discussion at the World Economic Forum in Davos, Swiss National Bank President Thomas Jordan gave his opinion on cryptocurrencies, stating that they’re more like assets and a far cry from being a currency. As such, monetary policy changes that result from cryptocurrencies are unlikely, Bloomberg reports.

“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, ” Jordan Explained.

A recent report by the Bank for International Settlements has found that most central banks aren’t yet at a stage where they’re ready to implement a central bank digital currency. Jordan took a similar stance, stating that he didn't believe policy makers needed to launch their own.

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

Read more: Falcon: Swiss bank is hoping to be the first to provide banking for crypto; Crypto community rejoices as Switzerland gains a new crypto advocate as President

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