A team of Bitcoin supporters from Switzerland, headed by Yves Bennaïm, have started a referendum process aiming to modify the Swiss constitution. If successful, this amendment would require the Swiss National Bank (SNB) to hold both gold and Bitcoin as part of its currency reserves, according to local news sources.
The suggested modification to the Swiss constitution is concise but impactful. It aims to alter the provision that presently instructs the SNB to “accumulate sufficient currency reserves from its income; a portion of these reserves must be kept in gold,” to now encompass “and Bitcoin.” This adjustment, despite being small in terms of text, could bring about a major transformation in Switzerland’s financial administration.
Will The Swiss Central Bank (Have To) Adopt Bitcoin?
Yves Bennaim, an influential figure in Switzerland’s crypto community and a member of the Bitcoin Association Switzerland’s board, expressed that this initiative goes beyond simply changing reserve assets. Instead, it represents a calculated step to “preserve our independence and impartiality” amidst economic instability worldwide. Moreover, it aims to spark a conversation on Switzerland’s financial future.
Luzius Meisser, President of Bitcoin Suisse’s asset management division, voices his backing for Bitcoin within the industry. At the SNB’s Annual General Meeting on April 26, 10 am CET, Meisser plans to advocate for Bitcoin. He believes that Bitcoin is a more resilient investment option than Euro and Dollar, which could lose value due to inflationary pressures affecting the SNB’s holdings. Moreover, he proposes that Bitcoin represents Switzerland’s financial autonomy from influential central banks such as the European Central Bank.
The initiative has attracted notice from different parts of the financial industry. According to Leon Curti, Head of Research at Digital Asset Solutions, Bitcoin’s designation as a commodity by the US Securities and Exchange Commission is significant because it could facilitate the Swiss National Bank’s process of incorporating it into their reserves.
Professor Gunther Schnabl, head of the Economic Policy Institute at the University of Leipzig and former advisor to the European Central Bank, shares this viewpoint from an academic standpoint. He points out that government debt has significantly grown in many developed nations, leading to a higher risk of default. In response, Schnabl proposes Bitcoin as a potential solution for the Swiss National Bank (SNB) to diversify its foreign currency reserves and minimize risk.
While some feedback towards Bitcoin is favorable, it’s important to acknowledge that not all opinions are positive. Detractors bring up concerns over Bitcoin’s past price instability and the ongoing regulatory challenges facing digital currencies. They contend that these features could conflict with the risk-averse approaches typically adopted by central banks.
Swiss National Bank Could Be $32.9 Billion Richer
Approximately two years ago, Thomas Jordan, then chair of the Swiss National Bank (SNB), rejected a comparable suggestion, explaining that Bitcoin didn’t satisfy the criteria for currency reserves “at present.” The SNB has remained silent on whether their position has shifted with the emergence of this new proposal and the ongoing regulatory and economic adjustments.
According to Luzius Meisser’s assessment, had the Swiss National Bank (SNB) adopted an aggressive purchasing strategy for Bitcoin starting from 2022, Switzerland’s reserves would have experienced substantial growth due to Bitcoin’s past price increase. Specifically, he suggests that if the SNB had bought CHF 1 billion ($1.13 billion) of Bitcoin each month, Switzerland’s wealth would be approximately 30 billion francs ($32.9 billion) greater today. Meisser emphasizes Bitcoin’s impressive gains relative to conventional assets such as German government bonds.
In Switzerland, citizens have the power to initiate a constitutional amendment referendum by collecting 100,000 valid signatures. Once achieved, this referendum has the potential to influence Switzerland’s financial plans and serve as an example for other countries. As the Swiss National Bank (SNB) prepares for its Annual General Meeting, the world will be watching closely to see how they respond to this groundbreaking suggestion.
At press time, BTC traded at $66,254.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- BCH PREDICTION. BCH cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- Best Goomba Characters In Mario Games, Ranked
- SOL PREDICTION. SOL cryptocurrency
- USD RUB PREDICTION
- Destiny 2 Player Transforms Their Warlock Into Team Fortress 2’s Medic
- USD PHP PREDICTION
- ETHW PREDICTION. ETHW cryptocurrency
2024-04-22 09:11