- Swiss National Bank rejects Bitcoin as a reserve asset, cites volatility
- SNB rejects Bitcoin proposal as Switzerland embraces digital currency
The Swiss National Bank (SNB) has officially rejected calls to add Bitcoin to its reserves. Despite growing pressure from the local crypto industry, the SNB cited concerns about stability and security. According to Reuters, Chairman Martin Schlegel from SNB declared that cryptocurrencies lack the quality requirements that his institution demands for currency reserves.
Swiss National Bank Chairman Rejects Bitcoin, Cites Liquidity and Volatility Concerns
To begin with, supporters of cryptocurrency have engaged in a campaign to request that the SNB start holding Bitcoin. Those who advocate Bitcoin support its potential use as an economic risk hedge tool. Central banks should pursue reserve diversification, according to supporters, since economic turmoil resulting from President Donald Trump’s tariff implementation requires more protective measures for their holdings.
Moreover, the Switzerland national referendum process has been launched to modify the Swiss Constitution. The proposed constitutional amendment would compel the Swiss National Bank to combine Bitcoin with traditional assets such as gold in its reserve. To proceed with the initiative, a national referendum requires that 100,000 Swiss citizens submit their signatures by June 30, 2026.
Chairman Schlegel strongly rejected this proposal during the SNB’s annual shareholder meeting in Bern. Schlegel stated that cryptocurrency fails to meet the reserve criteria needed for currency reserves at present. He emphasized that market liquidity stands as the primary issue. The Swiss National Bank requires immediate readiness to execute fast market transactions involving foreign currencies. The Bitcoin market lacks stable factors that provide sufficient assurance for this requirement.
In addition, Schlegel declared that cryptocurrencies exhibit extremely soaring price variations. The severe market fluctuations regarding Bitcoin tend to cast uncertainty on whether it can adequately preserve Switzerland’s monetary reserves. He emphasized that stable reserves serve as a cornerstone of financial security for the country.
On the other hand, crypto advocate Luzius Meisser argued in favor of Bitcoin during the meeting. Meisser at the Bitcoin Initiative labeled Bitcoin as a distinctive asset platform. Bitcoin’s value would not seem significant during typical situations, according to his remarks. He predicted Bitcoin would matter significantly in times when public debt trust ceases to exist while the world evolves toward a multi-power structure.
Swiss National Bank Stands Firm Against Bitcoin Reserve Inclusion Amid National Debate
Meanwhile, advocates of Bitcoin in Switzerland maintain an active behind-the-scenes interest. On December 31, 2024, the Swiss Federal Chancellery authorized the Bitcoin reserve proposal for public review. The supportive group rushes to accumulate enough signatures for the pending referendum.
Private businesses in the country continue to welcome Bitcoin adoption, even though the SNB maintains resistance to national adoption of Bitcoin. Spar Supermarkets has taken an ambitious step forward as part of its operations. A Spar supermarket situated in Zug, Switzerland, launched Bitcoin as a payment option for customers. Spar has established itself among early Swiss supermarkets that permit Bitcoin payments during the checkout process.
Therefore, Bitcoin is gaining popularity as a daily life solution even though the central bank acknowledges concerns. Several companies and customers now incorporate Bitcoin payments for daily transactions, which indicates a digital currency transition.
Lastly, the Swiss National Bank maintains its stance against Bitcoin as a reserve asset, but Switzerland progressively adopts cryptocurrency usage throughout the country. The future outcome of the referendum campaign that seeks Swiss Constitution amendments remains uncertain. At present, Bitcoin supporters seek to present their cause to the Swiss population.
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