Swiss banking boss Thomas Jordan urges new crypto regs
Swiss National Bank boss Thomas Jordan has called for a fresh crackdown on cryptos. In August’s Central Banking journal interview Jordan said most cryptos were characterised by “high price volatility” and primarily used for “speculative investment”.
Means of payment were “limited” he said; Jordan frets about consumer protection. “The same economic activity and risk should imply the same regulation – independently of whether the technology is crypto, digital or old-fashioned paper.”
Jordan went on: “By applying this principle as soon as possible, we will also avoid the misallocation of resources that only go to the crypto area because the regulation so far is different from that in the rest of the financial sector.”
Not Mr Popular
Previously Thomas Jordan said he did not oppose crypto technology per se. It was more “a question of who has access to central bank money and in what form. There are up to now many unsolved questions”, he opined.
Jordan is not a popular man in some parts of the foreign exchange and Swiss business community. He was responsible for scrapping the cap of the Swiss franc against the euro in early 2015. This unpegging saw the franc soar by close to 30% and instantly made Swiss exports, many directed back into the EU, massively expensive.
“If you decide to exit such a policy, you have to take the markets by surprise,” Jordan said at the time. Jordan’s interview is published in the August edition of Central Banking journal, which includes a survey on ‘big data’.