Swiss National Bank (SNB) Chairman Martin Schlegel reiterated the SNB’s cautious stance on cryptocurrencies, despite their growth in recent years.
Schlegel views crypto assets like Bitcoin and Ethereum as volatile, niche instruments unsuitable for daily transactions and raised concerns about their energy demands and ties to illicit activities, which complicate regulation.
Although Switzerland is exploring central bank digital currencies (CBDCs) for interbank payments, Schlegel emphasized that cash will remain essential.
His approach aligns with former SNB Chairman Thomas Jordan’s caution on CBDCs, as he warned that a public CBDC could disrupt the existing monetary framework without significantly improving payment solutions.
The bank chief voiced concerns about cryptocurrencies, citing their volatility, high energy consumption, and links to illegal activities, which complicate regulation.
Nonetheless, he noted the SNB’s commitment to technological innovation, including a pilot project for a central bank digital currency (CBDC) aimed at streamlining interbank payments.
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