Global central banks will start holding digital currencies in the next year, the chief executive of a cryptocurrency wallet platform told CNBC Monday. "I think this year will be the first year we start to see central banks start to hold digital currencies as part of their balance sheet," Peter Smith, CEO of Blockchain, told CNBC.
Smith said that central banks would likely buy bitcoin and Ethereum as part of their reserves. Central banks hold gold and foreign currency reserves to allow them to act if there are any market shocks. The rise of bitcoin as an asset could mean some monetary authorities will have to begin holding it.
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