Chris Thomas—the head of digital assets at Swiss online bank Swissquote—suggested that bitcoin and ether can be a part of a safe investment strategy.
According to a Dec. 28 announcement by Russian news outlet RIA, Thomas suggested that bitcoin and ether do not belong exclusively in the portfolios of the most risk-tolerant investors. He reportedly told the outlet:
“When it comes to investing in crypto assets, I personally believe that a ‘safe investment strategy’ is to buy and hold a small portfolio of Ethereum and Bitcoin. These projects will almost certainly exist in a certain number of years, also, the supply and demand for these assets should contribute to a significant increase in their value.”
That advice is becoming more common. Galaxy Digital head Mike Novogratz recently said he believed bitcoin should make up 5% of a portfolio, and CNBC “Mad Money” host Jim Cramer said earlier this month that he is investing in the first cryptocurrency. They join Wall Street legends Stanley Druckheimer and Paul Tudor Jones have both advocated bitcoin investments.
CBDCs are coming
Furthermore, talking about financial innovation in general, Thomas also pointed out that central banks all over the world are testing central bank digital currencies (CBDCs). He believes that “China is likely to be one of the first countries to introduce a digital currency — the digital yuan — possibly in late 2021.”
According to late September reports, China’s CBDC was already ready for deployment at the time. Furthermore, the People’s Bank of China clearly stated that it is eager to make China the world’s first nation to issue a digital currency. The institution places great emphasis on the project and already announced that its CBDC’s acceptance will be mandatory in the country.
When it comes to the first CBDC to be launched in Europe, Thomas believes that this may be launched by Sweden. He explained that the reason is that this country’s population is already familiar with digital money and local digital payment acceptance is 100%.
As Modern Consensus reported earlier this month, Sweden’s financial markets minister Per Bolund recently said that the local government is studying the creation of a CBDC. Furthermore, he announced that the country will decide whether it should launch its digital currency or not by 2022.
Outgoing U.S. Treasury Secretary Steven Mnuchin expressed no interest in a digital dollar.