Thomas Jordan, the president of the Swiss National Bank (SNB) – the Swiss central bank, warns that the so-called stablecoins to a foreign currency, are linked to monetary policy may be damaged.
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Limited use
Last Thursday, the 5th of september, he spoke at the University of Basel. There, he showed that he was satisfied that the cryptovaluta of limited use. Both as a payment instrument, oppotmiddel as a unit of account. According to Jordan, because they have a lot of fall as well as rise.
Switzerland’s central bank warns that stablecoin cryptocurrencies, such as Balance, could undermine its ability to ensure price stability.https://, etc.co./wu5wVDtyUo
— swissinfo.ch@swissinfo_en) on September 5, 2019 at the latest
Jordan: “Cryptographic tokens are a more speculative investment than the “good” money, look at the camera. Users have described the money more often than not, be “good” if it is a stable value, acceptance of, and efficient of payments as possible. Given these parameters, it seems unlikely that the cryptomunten in Switzerland on a large scale if the money was to be used”
The European Central Bank-releases-a-new-paper-heart-to-stablecoins..https://, etc.co./ETq19iLAYa#stablecoin
P. Georgitseas (@PGeorgitseas) On September 5, 2019 At The Latest
A threat to the financial stability of
Jordan has expressed further concern over the fact that stablecoins are linked to a foreign currency. Switzerland is one of the countries in which cryptobedrijven very welcome. By law, it is attractive for companies created in Switzerland to draw. However, to see Jordan and some obstacles on the way. Cryptobedrijven in Switzerland bring with them cryptomunten on the market, which are linked to foreign currency.
Jordan: “Stablecoins to a foreign currency, are linked to the effectiveness of monetary policy in the melee to come”
The central banker added that a stablecoin in the Swiss franc will not have any immediate impact on the effectiveness of monetary policy. However, according to Jordan, the issue of a central bank in the market regularly stablecoin, however, pose a threat to financial stability due to the probability of a run on the bank.
“Facebook’s token will be backed by a basket of real-world currencies, short-term government securities, and other assets. That distinction is important because of the implications of Balance in the context of global financial stability” from @forrester https://t.co/KeianPozd0
— Rohan Light (@rl_rohan) August 29, 2019
The Swiss National Bank to hold Facebook’s Balance a close eye on
Facebook’s cryptoproject Libra by Libra Networks is registered in the commercial register of the Swiss Chamber of Commerce and industry of Geneva. The central bank has to let you know, in close contact with the competent authorities in Geneva about Facebook’s crypto-project.
SNB’s vice-chairman, Fritz Zurbruegg indicated that it was becoming increasingly difficult, it is to the success of the project and to be able to analyze, due to the vague nature of the documentation. The central bank will keep the project in each and every case carefully, but also to its independence, to maintain it and make sure that it does not pose a threat to the mandates of the SNB.
Making money from thin air (winner of the balance sheet): #Switzerland’s central bank reports a profit, or CHF30bn at Q12019. Strong gains in equities contributed 17.4 bn francs to the SNB’s quarterly result, which also got a boost from bond prices and white. https://t.co/sNzF3MBUUd pic.twitter.com/Wfx0JdvFaO
— Holger Zschaepitz (@Schuldensuehner) April 25, 2019 At The Latest
A funny detail is that The SNB held in 2018, 8,93-million A-class shares of Facebook at a value of $1.4 billion and is a major shareholder in the company. That’s more than Facebook’s CEO Mark Zuckerberg, who is 8,91 million of those shares were issued. Although a significant part in the maintenance of SNB’s Facebook shares, and only a small proportion of the total, as it is around 843 billion Swiss francs in the balance. Of which is less than 42 billion francs in gold and iron.
Source: SNB, Retail, Newspapers
(Photo: Flickr / Book Catalog
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