SNB Rejects Bitcoin as Reserve Asset, Citing Volatility and Security Risks
1min read The Swiss national bank (SNB) has rejected the idea of adding Bitcoin to its reserve assets, citing concerns over stability, liquidity, and security risks. SNB President Martin Schlegel dismissed the proposal from Swiss Bitcoin nonprofit think tank 2B4CH, which aims to constitutionally mandate the SNB to hold Bitcoin on its balance sheet.
In a recent interview with Swiss media outlet Tamedia, Schlegel argued that Bitcoin's volatility makes it an unsuitable reserve asset for the country's central bank. He emphasized that Bitcoin's price swings and market fluctuations are incompatible with the SNB's financial strategy, which requires highly liquid reserves that can be used quickly for monetary policy purposes.
Beyond volatility, Schlegel raised concerns over technical vulnerabilities associated with cryptocurrencies. He noted that since Bitcoin is software-based, it remains susceptible to bugs and security flaws, lacking the reliability needed for central bank reserves.
The 2B4CH initiative, officially set in motion by the Swiss Federal Chancellery on Dec. 31, requires 100,000 signatures to qualify for a public referendum. The group has until June 30, 2026, to gather enough support, meaning about 1.11% of Switzerland's 8.97 million residents must sign the petition.
While Switzerland remains cautious, other nations are actively exploring Bitcoin reserves. el Salvador has continued accumulating Bitcoin since September 2021, while the U.S., Czech Republic, and Hong Kong are considering similar policies. Conversely, Poland recently ruled out adding Bitcoin to its reserves.
Despite Schlegel's resistance, Switzerland remains a hub for Bitcoin adoption, particularly in Lugano, which hosts the annual "Plan ₿" conference. Several U.S. states have also introduced bills that could enable them to hold Bitcoin and other cryptos as reserve assets.