Swiss National Bank Rejects Bitcoin as Reserve Asset

The Swiss National Bank (SNB) has officially rejected calls to add Bitcoin to its reserves, citing concerns about stability and security. Chairman Martin Schlegel from SNB declared that cryptocurrencies lack the quality requirements that his institution demands for currency reserves. This decision comes despite growing pressure from the local crypto industry, which has been advocating for the inclusion of Bitcoin as a reserve asset.

Supporters of cryptocurrency have been campaigning for the SNB to start holding Bitcoin, viewing it as a potential economic risk hedge tool. They argue that central banks should pursue reserve diversification, especially in light of economic turmoil resulting from various global factors. However, the SNB has maintained a firm stance against this proposal, emphasizing the need for stable and liquid assets in its reserves.

During the SNB’s annual shareholder meeting in Bern, Chairman Schlegel strongly rejected the proposal to include Bitcoin in the national reserves. He highlighted that cryptocurrencies do not meet the reserve criteria needed for currency reserves at present. Market liquidity stands as the primary issue, as the SNB requires immediate readiness to execute fast market transactions involving foreign currencies. The Bitcoin market lacks stable factors that provide sufficient assurance for this requirement.

Schlegel also pointed out that cryptocurrencies exhibit extremely soaring price variations, which tend to cast uncertainty on whether they can adequately preserve Switzerland’s monetary reserves. He emphasized that stable reserves serve as a cornerstone of financial security for the country. This stance is in contrast to the views of crypto advocates like Luzius Meisser, who labeled Bitcoin as a distinctive asset platform. Meisser predicted that Bitcoin would matter significantly in times when public debt trust ceases to exist while the world evolves toward a multi-power structure.

Meanwhile, advocates of Bitcoin in Switzerland maintain an active behind-the-scenes interest. The Swiss Federal Chancellery authorized the Bitcoin reserve proposal for public review on December 31, 2024. The supportive group is rushing to accumulate enough signatures for the pending referendum, which requires 100,000 Swiss citizens to submit their signatures by June 30, 2026, to proceed with the initiative.

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. This move indicates a growing acceptance of digital currency in daily transactions, despite the central bank's concerns.

In conclusion, while the Swiss National Bank maintains its stance against Bitcoin as a reserve asset, Switzerland is progressively adopting 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, highlighting the ongoing debate and the potential for further integration of digital currencies in the region's financial landscape.