A recent survey carried out by Swiss banking giant, UBS, has revealed that central bankers see the benefit of investing in crypto assets like Bitcoin.
The survey, which was carried out in commemoration of the 27th Annual Reserve Management Seminar, had around 30 central bankers from across the world and was conducted between the months of April to June.
According to the bank, its most recent survey “is among the most authoritative depictions of official reserve management activities available.”
When the central bankers were asked why central banks could invest in digital assets like Bitcoin, the most common answer amongst them was “Learning/ building up knowledge about crypto investing process and investment management.” According to them, if their central bank was to invest in the crypto space, it would enable them to learn more about the industry.
The learning process itself of investing and managing this new asset class would be valuable for their institution.
Per the finding by UBS, other common answers were that they were “uncorrelated assets,” with some of them believing that investing in crypto would signal the progress of their financial institution. One surprising answer is also that they agree that Bitcoin and other crypto assets could be “gold alternatives.”
However, when these bankers were specifically asked if they believed Bitcoin could replace gold as a safe haven asset, they were unequivocal in their dismissal of the crypto asset. “A majority of 84% of participants do not believe that cryptocurrencies will displace gold as a safe haven,” UBS noted. The bank added that “16% of the respondents were uncertain.”
On the question of central bank digital currencies(CBDC), a number of them believed that the two asset classes could coexist, 33% of them were of the opinion that CBDCs will displace cryptocurrencies.