Swiss National Bank VP calls Bitcoin an "interesting concept," hinting at potential future investment
The Vice President of the Swiss National Bank has referred to Bitcoin as a "very interesting concept," indicating the SNB's curiosity about the technology and potential use of Bitcoin without expressing support or opposition to BTC, and previous comments from SNB's chief have suggested that the SNB may consider adding Bitcoin to its foreign reserves in the future.
Martin Schlegel, the Vice President of the Swiss National Bank (SNB), has caused a stir in the Bitcoin community with a remark in a TV interview, stating that he considers Bitcoin a "very interesting concept." Although this was his only statement regarding Bitcoin, it gives an interesting insight into the current view of the Swiss National Bank, implying that it is curious about the technology and potential use of Bitcoin without expressing support or opposition to BTC.
Schlegel's comment is notable because a US Federal Reserve (Fed) or European Central Bank (ECB) could never admit that the number one cryptocurrency is an "interesting concept." Instead, ECB President Christine Lagarde repeatedly referred to Bitcoin as "worth nothing" and a "speculative investment with no intrinsic value."
This isn't the Swiss National Bank's first comment on BTC, with SNB chief Thomas Jordan voicing his opinion on the possible addition of Bitcoin to the central bank's foreign reserves during the SNB's April 2022 General Meeting. This was preceded by two open letters from financial services company Bitcoin Suisse, both promoting an investment in the cryptocurrency, calling for the creation of a framework "to be able to acquire and hold Bitcoin for monetary and exchange rate purposes if needed."
Jordan responded to this proposal at the General Meeting, explaining that BTC does not currently meet the requirements for foreign reserves, and therefore, the SNB has decided not to keep BTC on its balance sheet. However, he noted the prospect that the SNB could act quickly should that assessment change, saying that "we can arrange the technical and operative conditions relatively quickly when we are convinced we must have Bitcoin in our balance sheet."
Unlike its American and European counterparts, the Swiss National Bank cannot use accounting tricks to embellish its balance sheet, as it is constituted as a joint-stock company and therefore reports in accordance with the appropriate rules. This means that the SNB cannot hide its losses by valuing government bonds they hold at cost price rather than market price, as demonstrated in March 2023 when the SNB presented its annual financial statements. The Swiss National Bank lost about two-thirds of its equity, reducing the SNB's equity from 204.2 billion francs ($225.97 billion) to 65.8 billion francs ($72.81 billion).
At press time, the BTC price stood at $27,918, with the release of the US unemployment rate potentially leading to volatility for BTC on Friday.
