Swiss Central Bank Remains Cautious About Bitcoin Despite Strong Price Increases

The Chairman of the Swiss National Bank (SNB), Mr. Martin Schlegel, stated that although the prices of cryptocurrencies such as $BTC and $ETH have surged in recent years, they are still a "niche phenomenon" and have yet to become a mainstream payment method. Mr. Schlegel emphasized that cash will continue to play an important role in Switzerland's payment system.

According to Mr. Schlegel, the high price volatility and energy consumption of cryptocurrencies, along with links to illegal activities, make them difficult to use in everyday transactions. Nevertheless, #SNB does not overlook new technology and is experimenting with a central bank digital currency (CBDC) project to improve interbank payments.

While SNB is exploring the use of #CBDC , Mr. Schlegel reaffirmed the commitment to cash. Previously, former Chairman Thomas Jordan also emphasized that the risks from this technology still outweigh the potential benefits and Switzerland has many effective payment solutions from the private sector, thus a public CBDC is not yet necessary.