- Early last year, Swiss National Bank officials concluded that Bitcoin has not yet met the requirements set to be added to its balance sheet as a reserve currency.
- Bitcoin price has fallen roughly 33 percent since April of last year to trade around $28k.
The Bitcoin market has grown over the years to become a global community of more than 56 million holders. Trading around $28k on Friday, Bitcoin has attracted institutional investors for outperforming traditional market stocks. According to market data provided by TradingView, the Bitcoin price is up roughly 70 percent YTD, Gold it has gained about 9 percent, while the Dow Jones has only added 1 percent since the calendar reversed.
As a result, publicly traded companies have been slowly adding Bitcoin, among other crypto assets, to their balance sheets. According to market data provided by Coingecko, a total of 174,374 Bitcoins are held by publicly traded companies around the world.
Most of it is in the hands of microstrategy Inc. with approximately 129,699 Bitcoins, worth approximately $3.6 billion. Others include Coinbase Global and crypto mining companies like Marathon Digital. However, the global banking industry has not invested in Bitcoin due to regulatory restrictions.
Swiss banks in Bitcoin
The banking industry in Switzerland has experienced significant challenges in the recent past. Credit Suisse has already collapsed and has been taken over by UBS under government supervision. In its defense, the Swiss Financial Market Supervisory Authority (FINMA) blamed the leadership of Credit Suisse for the collapse of the country's second-largest bank.
As a result, Swiss banks have started researching the Bitcoin and cryptocurrency market to ensure future growth prospects. For example, PostFinance, the fifth largest financial services company in Switzerland, will offer cryptocurrency services to more than 2.69 million customers through a partnership with Sygnum Bank.
In a recent TV interview, Swiss National Bank (SNB) Vice President Martin Schlege noted that Bitcoin is very interesting.
DUDE Listen to this and buy this damn coin, vice president of the SWISS NATIONAL BANK! #bitcoin #inflation pic.twitter.com/qLBE1szVmQ
โFiatbomb (@Kanthadax) April 6, 2023
Early last year, Swiss National Bank President Thomas Jordan told the central bank's annual general meeting that the bank is against having Bitcoin as a reserve currency. During the meeting, Jordan added that the Bank is not yet convinced that Bitcoin meets the requirements set for a reserve currency.
โBuying bitcoin is not a problem for us, we can do it directly or we can buy bitcoin-based investment products,โ Jordan said. โWe can arrange the technical and operational conditions relatively quickly when we are convinced that we must have Bitcoin on our balance sheet.โ
bigger picture
The Bitcoin price has benefited significantly from the global banking crisis, which started with three regional banks in the United States. In particular, investors have been fleeing the banking industry into cryptocurrency self-custody. As a result, the United States federal government has identified the decentralized financial ecosystem as a threat to national security. In addition, former President Donald Trump has admitted that the US dollar is losing its position as a global reserve currency.
#Triumph on the end of US hegemony:
โOur currency is collapsing and will soon cease to be the world standard, which would be our biggest defeat in the last 200 years.โ pic.twitter.com/OsopDmVpxmโ Denis Rogatyuk (@DenisRogatyuk) April 5, 2023
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