National Bank of Switzerland: stablecoins reduce the effectiveness of monetary policy

Swiss National Bank President Thomas Jordan said fiat-currencies stablecoins could adversely affect the effectiveness of monetary policy. This is reported by the Cointelegraph .

“If stablecoins pegged to foreign currencies were spread in Switzerland, the effectiveness of our monetary policy could be reduced ,” the head of the central bank emphasized during a speech at the University of Basel.

He added that the stablecoins secured by the franc “do not directly affect the effectiveness of monetary policy.” However, if the central bank starts to issue such a coin, this can create risks for the financial stability of the country.

Jordan also noted that the popularity of crypto assets in general as payment instruments and means of preserving value is low due to their significant volatility.

“Cryptotokens in their characteristics are more like speculative investment instruments than“ good ”money. With “good” money, users usually associate stable value over time, widespread adoption and effective payments. Given these parameters, it is unlikely that cryptocurrencies will be widely used as money in Switzerland, ”the banker said.

Earlier, Avenir Suisse analysts called on the central bank of Switzerland to issue a national cryptocurrency. Representatives of the company believe that such a means of payment could contribute to the modernization of the financial sector of the country and serve as an impetus for the implementation of the blockchain in various areas.

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