Thomas Jordan, Director of the Swiss Central Bank, says that crypto-currencies are not sound money, but stable coins have the potential to find broad acceptance.
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Crypto-currencies will not find any acceptance in the Mainstream
Thomas Jordan, Chairman of the Board of Directors of the Swiss national Bank (SNB), said at an event at the University of Basel against the performance promise of Bitcoin & co. as a currency. According To Jordan:
Crypto-Token does not have the characteristics of “good” money that is typically stable over time, is generally accepted and efficient payments. Given these parameters, it appears unlikely that crypto-Token to be used in Switzerland as a money.
Jordan highlighted the potential of stable coins. The Director of the Swiss Central Bank explained that the fictitiously-named Stablecoins could be currencies as a replacement for traditional Fiat. Bitcoin is already a replacement for Fiat in countries such as Turkey and Venezuela. If a country’s currency loses in value and the Forex trading is difficult, people turn in the direction of Bitcoin and other crypto-currencies.
The Transmission of values about crypto currencies is currently more efficient than in the case of SWIFT Transfers. An example of this is Bitcoin Remittances to the value of $ 100 million to be transferred in a few minutes for a few hundred dollars in fees.
Stablecoins a vehicle of the future?
Thomas Jordan is not the first European banker of stablecoins about Bitcoin. Already in may 2019, the political decision-makers of the European Central Bank (ECB), Francois Villeroy de Galhau, that stable coins will eventually beat Bitcoin in the race to the introduction of the main streams said.
This apparent love for Stablecoins, however, exists only in the context of a digital currency to the Central Bank (CBDC). Jordan made this distinction, made clear in his speech:
It is important that we are aware of the economic function of stablecoins in the Clear. Depending on how they are structured, stable coins in the Deposit, the characteristics of a Bank or a privately issued Banknote have. This would be the case for the Stablecoin in Swiss francs, if they would be widely used for cashless payments or as a store of value, since it would effectively be a replacement for Swiss franc Bank deposits.
Libra requires international regulatory cooperation
To this end, Stablecoin get projects like Facebook’s Libra without a “permit” in Europe. Jordan commented on the project and said that the regulation would have authorities from all over the world work in unison, to monitor operations adequately.
Authorities in Germany and France, have spoken out recently against the crypto-currency is Libra. In the meantime, the Swiss regulatory authorities say that they will enforce strict laws to combat money-laundering (AML) in the context of the project.
Text evidence: bitcoinis, OSATO AVAN-NOMAYO