Disclaimer – I am not a financial advisor, and nothing in this article should be interpreted as financial advice; it is for educational purposes only.
The Central Bank of Switzerland recognizes the intrinsic value of Bitcoin, largely driven by its finite nature and the decentralized, secure public blockchain empowering the technology. Reuters reported the Swiss central bank chief saying:
“Buying bitcoin is not a problem for us. We can do that either directly or can buy investment products which are based on bitcoin.”
He explained how they do not yet consider it a reserve asset, but they are monitoring the fluid situation and have the technical capabilities ready to add it to their balance sheet when they deem it necessary. The statements are noteworthy because of the role Swizterland has played in international finance as a central hub for major international transactions. It has been home to the wealth of many of the most prosperous people on earth as it maintains its status as a neutral country. If it were to adopt bitcoin as a reserve asset, which seems more and more likely, it would be hard for even the most archaic bitcoin skeptics to deny its intrinsic value as a unique savings vehicle.
A Bitcoin Spot ETF approval could be around the corner, and America’s largest retirement-plan provider recently announced plans to allow their clients up to 20% exposure to bitcoin in their retirement portfolios. More companies are adopting it, and CashApp is even giving people the option to accept payment for transactions in Bitcoin. Despite all the chaos happening in the world, the price of bitcoin has stabilized relative to its former volatility and never touched the lows of $20,000 some were predicting it would fall to. The long-term prospects of the asset are brighter than ever, but several macroeconomic factors hang over bitcoin’s head, presenting short-term concerns.
In the short term, bitcoin is still being treated as a “risk-on” investment vehicle by Wall Street, so high-risk speculators who have a notable impact on the price have been driving wild market swings. The excessive printing of money by the Federal Reserve is shaking people’s confidence in the dollar, and America’s continuous war machine is dimming prospects of a prosperous economy due to the opportunity cost of the lack of investment in the American people. As one of the most financially savvy governments, Switzerland’s interest will undoubtedly lead to more and more lawmakers in other countries considering it.
The lawmakers of the Central African Republic (CAR) recently voted to make it legal tender in the country, making it the second to do so and allowing its residents with internet access to protect their wealth. In recent years, political turmoil has resulted in vast amounts of wealth being deflated by central bank corruption, preventing its citizens from effectively saving. Panama was not far behind becoming the third country in the world to recognize bitcoin as legal tender – they have also served as an important financial center. They share a notable commonality with the first country to legalize bitcoin – both countries are directly dependent on the US dollar.
El Salvador uses the US Dollar as its official currency. The Panamian Dollar is pegged to the US Dollar, so the USD’s devaluation would affect both countries even more quickly than the rest of the world. Other countries that are directly dependent on the US dollar, like my own, The Turks and Caicos Islands, would be wise to take notice.
A recent report indicated that over 100,000 Cubans are already using bitcoin. Its government had remained fairly neutral but recently announced the introduction of government-sanctioned cryptocurrency services. Taking a step back, one realizes bitcoin is attracting an enormously vast range of people, from far-right politicians like Ted Cruz to communist governments and even the world’s richest man on paper (Elon Musk), just to name a few. This range is yet another sign that this transformative technology must be taken seriously as intelligent people from all walks of life are buying it up and becoming more and more interested in it.
Even lawmakers in America have noticed the opportunity it presents as certain states and city governments have made public stances in favor of it – ranging from the Mayor of Miami to the Governor of Texas, for example. Individuals focused on preserving and growing their wealth would also be wise to investigate further how its finite nature and open-source, public blockchain make it the best, most secure, and decentralized money ever created.
See below for the latest Coin Bureau Crypto Update where Guy dives into this more and some of the latest crypto news.
