Swiss National Bank President Reportedly Dismisses Bitcoin as Reserve Asset
The Swiss National Bank (SNB) has firmly dismissed the idea of holding Bitcoin as part of its national reserves, citing concerns over stability, liquidity, and security. SNB President Martin Schlegel outlined these reasons in an interview with Swiss media, emphasizing that Bitcoin does not meet the necessary criteria for a reserve asset.
This stance comes amid a growing debate in Switzerland, where a new initiative seeks to make Bitcoin a part of the central bank’s reserves through a constitutional amendment.
Why the SNB Rejects Bitcoin
Speaking to the Tamedia group, Schlegel provided three key reasons why the SNB does not consider Bitcoin a viable reserve asset:
- Volatility – Bitcoin’s price fluctuations make it unsuitable for preserving value in the long term. A reserve asset must provide stability, which Bitcoin lacks due to its frequent and unpredictable price swings.
- Liquidity – The SNB requires highly liquid reserves that can be quickly utilized for monetary policy. Bitcoin, despite its growing adoption, does not offer the same level of immediate liquidity as traditional reserve assets like gold or foreign currencies.
- Security Risks – Schlegel pointed out that as a digital asset, Bitcoin is vulnerable to software bugs and other weaknesses. Unlike traditional assets, cryptocurrencies rely on digital security measures that could be compromised.
Despite Switzerland’s growing acceptance of cryptocurrencies, Schlegel dismissed Bitcoin as a “niche phenomenon.” He also asserted that the Swiss franc remains strong, and the central bank is not concerned about competition from cryptocurrencies.
Push for Bitcoin Reserves Gains Momentum
While the SNB remains cautious, a recent initiative led by Swiss entrepreneur Yves Bennaim is pushing for a constitutional amendment that would require the central bank to hold Bitcoin alongside gold.
The initiative, launched in December 2024, does not specify an exact allocation but proposes that Bitcoin reserves be built up using the SNB’s earnings. The campaign has 18 months to collect 100,000 signatures, which would trigger a nationwide vote on the matter. If successful, Switzerland could become the first country to mandate Bitcoin holdings at the central bank level.
Switzerland’s Crypto-Friendly Approach
Despite the SNB’s rejection, Switzerland remains one of the most crypto-friendly nations in the world. Several Swiss banks offer cryptocurrency services, and the country has positioned itself as a hub for blockchain innovation. The city of Zug, known as “Crypto Valley,” hosts numerous blockchain startups and has implemented policies that support digital assets.
The growing support for Bitcoin in Switzerland reflects a broader global trend where institutional and government interest in cryptocurrencies is rising. However, central banks, including the SNB, remain cautious due to concerns over volatility and regulatory uncertainty.
Conclusion
The debate over Bitcoin’s role in national reserves is far from over. While the SNB maintains a conservative stance, the push for a constitutional amendment signals growing interest in integrating Bitcoin into Switzerland’s financial system. The coming months will determine whether the initiative gains enough public support to bring Bitcoin into the country’s reserve strategy.
