min to read

2019-09-09 16:41:23




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The national bank of Switzerland: stablecoins reduce the effectiveness of monetary policy

President of the National Bank of Switzerland

min to read

2019-09-09 16:41:23

According to Cointelegraph the President of the National Bank of Switzerland Thomas Jordan said that fiat backed stablecoins could negatively affect the effectiveness of monetary policy.

According to Cointelegraph the President of the National Bank of Switzerland Thomas Jordan said that fiat backed stablecoins could negatively affect the effectiveness of monetary policy.

 

“If stablecoins backed by foreign currencies were spread in Switzerland, the effectiveness of our monetary policy could be reduced,” the head of the central bank emphasized during his speech at the University of Basel.

 

He added that Swiss franc backed stablecoins “do not have an immediate impact on the effectiveness of monetary policy”. However, if the central bank starts to issue such a coin, this can create risks for the country's financial stability.

 

Jordan also mentioned that in general the popularity of crypto assets as payment instruments and means of preserving value is low due to their significant volatility.

 

“Crypto tokens by their nature are more like speculative investment instruments than “good” money. With “good” money, users usually associate stable value over time, widespread adoption and effective payments. Taking into account these characteristics, it is unlikely that cryptotokens will be widely used as money in Switzerland,” the banker said.

 

Earlier, the analysts of Avenir Suisse called upon the central bank of Switzerland to issue national cryptocurrency. The representatives of the company believe that such a means of payment could contribute to the modernization of the financial sector of the country and trigger the implementation of the blockchain in various areas.

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