- SNB rejects Bitcoin reserves, citing volatility, liquidity issues, and digital security risks.
- Swiss crypto advocates push referendum to mandate Bitcoin inclusion in national reserves.
- Global debate grows as some governments explore Bitcoin reserves amid financial shifts.
The Swiss National Bank (SNB) has opposed integrating Bitcoin into its currency reserves. Chairman Martin Schlegel addressed the matter during the institution’s annual shareholder assembly in Bern on April 25. His remarks come amid rising pressure from Switzerland’s cryptocurrency industry, which has launched a referendum campaign seeking to mandate Bitcoin adoption at the national reserve level.
Speaking before shareholders, Schlegel emphasized that the SNB requires reserve assets that can be reliably bought and sold. He stated that Bitcoin and other digital currencies fail to meet these standards due to price volatility and limited liquidity. Schlegel described cryptocurrency fluctuations as “very, very high,” undermining their reliability as safe reserve holdings.
Additionally, Schlegel cited technical risks associated with digital assets, noting that software-based cryptocurrencies are vulnerable to bugs and security flaws. He stressed that such factors could compromise the stability of Switzerland’s monetary reserves if Bitcoin were incorporated.
Schlegel’s comments align with previous statements where he clarified that the SNB sees no current role for cryptocurrencies in its foreign-exchange reserve management. Last month, during an interview with Bloomberg Television, he reaffirmed that digital currencies fail to meet essential requirements like value preservation.
Referendum Initiative Seeks Bitcoin Inclusion
Despite the SNB’s firm stance, cryptocurrency advocates have intensified efforts to force policy change. A referendum initiative led by the Bitcoin Initiative group has been launched to amend Switzerland’s constitution. The proposal aims to mandate the SNB to diversify its reserve assets by adding Bitcoin alongside gold.
Luzius Meisser, founder of the Bitcoin Initiative, addressed the shareholder meeting directly. He presented Bitcoin as a “special asset” that could protect against geopolitical instability and reduced confidence in sovereign debt.
According to Meisser, Bitcoin may not hold value under normal conditions, but it could be a major asset in a multipolar world order with declining trust in traditional government securities.
According to Swiss legislation, within 18 months, the campaign shall ensure that its proposal garners 100,000 signatures, which will compel the government to hold a referendum. In the future, if the proposal becomes successful, the country can be among the first to have a referendum on bitcoin reserve diversification.
Global Context: Strategic Bitcoin Reserves Emerging
The SNB’s resistance comes as some governments begin exploring strategic Bitcoin reserves. In March, the United States announced the creation of a Bitcoin reserve composed of assets seized through legal proceedings and established a general digital asset stockpile encompassing other cryptocurrencies.
This policy shift has sparked discussions worldwide about the possible role of decentralized assets in national reserves. However, several governments remain cautious. Concerns over price volatility, liquidity challenges, and technical risks remain major deterrents.
While Switzerland has become one of the most attractive hubs for blockchain-based companies, commonly known as the Crypto Valley, it is rather cautious at the official level in money affairs. The SNB leadership reaffirmed the bank’s commitment to using traditional forms of reserves such as gold and leading foreign currencies only if conditions shift wholesale.
