Swiss National Bank President Dismisses Bitcoin as Reserve Asset

The Swiss national bank (SNB) has ruled out adding Bitcoin to its reserves, citing concerns over volatility and liquidity. In an interview with Tamedia, SNB Chairman Martin Schlegel emphasized that currency reserves must be liquid, retain their value, and be easily bought and sold. He stated, "We have so far not decided to invest in Bitcoin and for good reasons."

Schlegel's comments come amidst growing interest in cryptocurrencies worldwide, with countries like the US, Russia, and Japan considering Bitcoin reserves. In Switzerland, a campaign is underway to mandate the SNB to hold Bitcoin as part of its reserves. The initiative, registered in the Swiss Federal Gazette on December 31, 2024, seeks to amend Article 99 of the Swiss Federal Constitution to include Bitcoin alongside gold in the SNB's reserves.

However, SNB representatives remain skeptical of Bitcoin's suitability as a reserve asset. Luzius Meisser from Bitcoin Suisse highlighted the SNB's past losses on government bonds and suggested that investing in Bitcoin could offer greater long-term stability and potential returns. He emphasized Bitcoin's value as a hedge against inflation and a store of value, contrasting it with traditional assets like government bonds.
Despite the SNB's opposition, the Bitcoin referendum is set to proceed, with supporters aiming to gather 100,000 signatures to trigger a national vote. The initiative seeks to enhance Swiss sovereignty and neutrality while providing an opportunity for greater diversification of the SNB's investment portfolio.
The debate surrounding Bitcoin's role in national reserves continues, with central banks worldwide weighing the potential benefits and risks of adopting cryptocurrencies. As the Swiss National Bank maintains its cautious stance, the future of Bitcoin as a reserve asset remains uncertain.