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SynBiotic SE becomes the first public-listed firm in Germany to shift part of its free liquidity in the world’s largest cryptocurrency Bitcoin (BTC). The announcement comes on Tuesday, February 16, citing the massive money printing by the European central bank in recent times.
Thus, citing high chances of further inflation and Euro devaluation, SynBiotic SE decided to hedge it with its fresh Bitcoin purchases. SynBiotic SE CEO Lars Müller said:
“Our decision focused less on price fluctuations than the risk of devaluation of euro and dollar. Bitcoin is the exact antithesis of traditional currencies: its volume is limited to 21 million units. This limit is fixed and inviolable, which the cryptocurrency‘s decentralized organization and the blockchain‘s tamper-proof nature in turn guarantees.
For this reason, we have more long-term confidence in bitcoin than in euros or dollars, where a central institution, influenced by politicians, can expand the money supply immeasurably. In addition, the cannabis sector in particular has had very positive experiences with bitcoin as a simple and digital means of payment. Several SynBiotic subsidiaries already accept payments in bitcoin in addition to payments in euros.”
As central banks worldwide are printing money at an unprecedented rate, financial institutions are moving to hedge against rising inflation and currency devaluation/debasement. Interestingly, Bitcoin (BTC) is turning out to be the most-preferred asset class.
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