Story Highlights
- SNB refuses to add Bitcoin to its reserve assets.
- Schlegel warns of Bitcoin’s volatility and financial instability.
- SNB dismisses Bitcoin as a competitor to the Swiss franc.
The Swiss National Bank (SNB) has made it clear that Bitcoin will not be included as a reserve asset. SNB President Martin Schlegel underlined that cryptocurrencies do not possess critical aspects needed to make reliable currency systems function properly. According to local media, the Swiss National Bank’s President identified multiple downsides of cryptocurrencies including market volatility as well as security issues and limited liquidity, which make them unfit for reserves.
Swiss National Bank Rejects Bitcoin Reserve Over Volatility and Security Risks
Schlegel demonstrates that cryptocurrencies demonstrate excessive volatility which prevents them from providing dependable financial stability over an extended period. High liquidity within reserve assets stands as a necessity for monetary policy decisions that require swift accessibility, according to central banks.
Another major concern is security. Schlegel highlighted the security issues resulting from the software nature of cryptocurrencies because they contain bugs and face cyber threats. According to Schlegel, cryptocurrencies introduce excessive risk that renders them unfit for SNB reserve assets.
Swiss Bitcoin supporters remain committed to Bitcoin adoption even though the central bank rejected its adoption. A new initiative introduced on December 31, 2024, works to persuade the SNB to incorporate Bitcoin into its official asset holdings. The proposed amendment needs 100,000 Swiss citizen signatures before June 30, 2026, to start the national voting procedure.
Swiss Bitcoin Supporters Push for Adoption as Swiss National Bank Stands Firm
The Swiss National Bank has displayed continuous caution toward digital asset acceptance since the beginning. In November 2024, the bank recognized cryptocurrency expansion while stressing its status as a specialized market beyond being a basic financial instrument. Schlegel reinforced his argument by stating that although cryptocurrency market capitalization shows significant growth it remains modest compared to global financial markets.
Schlegel addressed the notion of Swiss franc competition from digital assets by viewing it as a non-problem. Competition for currencies has always occurred, and the Swiss franc continues to be one of the most desirable assets in circulation. Schlegel confirmed that the SNB has no apprehension regarding competition from cryptocurrencies.
The Swiss National Bank stands resolute behind its current position despite ongoing discussions. For now, Bitcoin and other digital assets will not be part of Switzerland’s monetary reserves. However, with public support for Bitcoin growing, the discussion may not end anytime soon.
