The head of the Central Bank of Switzerland: “Stablecoins can harm monetary policy”

The head of the Central Bank of Switzerland: 'Stablecoins can harm monetary policy'

The Acting Governor of the Swiss National Bank Thomas Jordan said that stablecoins pegged to foreign currencies could have a negative impact on the monetary policy of the state.

Speaking at the University of Basel, he talked about the limited use of cryptocurrencies as a means of payment, savings and unit of account due to their volatility. According to him, coins and tokens are rather speculative investment instruments than «good» money that can be widely used and provide efficient payments. Therefore, it is unlikely that cryptocurrencies will massively used in Switzerland.

Thomas Jordan also expressed his concerns about stablecoins. He said that if the coins tied to fiat currencies become popular, then this may reduce the effectiveness of the country’s monetary policy.

Adding that digital Swiss francs would not have such a detrimental effect, but their availability to the general public could threaten financial stability and the banking system.

Despite the fears of many economists, the Bank for International Settlements will support Central Banks, which are engaged in the research and development of national digital currencies.

text: Ivan Malichenko, photo: Bloomberg

The head of the Central Bank of Switzerland: 'Stablecoins can harm monetary policy'

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