Swiss National Bank (SNB) President Martin Schlegel has firmly rejected the idea of incorporating Bitcoin into Switzerland’s reserve assets, citing concerns over stability, liquidity, and security risks. His stance directly opposes a proposal by Swiss Bitcoin nonprofit think tank 2B4CH, which seeks to constitutionally mandate Bitcoin holdings within the SNB’s balance sheet.
Bitcoin Volatility Poses a Major Concern
In a March 1 interview with Swiss media outlet Tamedia, Schlegel stated that Bitcoin’s extreme price swings make it unsuitable as a reserve asset. “Our reserves need to be highly liquid so they can be used quickly for monetary policy purposes if needed,” he explained, emphasizing that Bitcoin’s fluctuating market conditions are incompatible with the SNB’s financial strategy.
Beyond volatility, Schlegel raised concerns about Bitcoin’s security vulnerabilities. He pointed out that as a software-based asset, Bitcoin remains susceptible to technical flaws and potential security breaches. “We all know that software can have bugs and other weak points,” he warned, reinforcing skepticism about the reliability of cryptocurrencies in central banking.
SNB Dismisses Bitcoin’s Role in Swiss Finance
Despite Bitcoin’s market capitalization nearing $3 trillion, Schlegel described it as a “niche phenomenon” within the broader financial system. He also dismissed concerns that Bitcoin could challenge the Swiss franc’s dominance. “We’re not afraid of competition from cryptocurrencies,” he stated, reinforcing the SNB’s confidence in traditional monetary policy.
Meanwhile, the 2B4CH initiative, which officially launched under the Swiss Federal Chancellery on December 31, 2024, aims to collect 100,000 signatures to qualify for a public referendum. The group has until June 30, 2026, to gather support, requiring approximately 1.11% of Switzerland’s population to back the proposal.
Bitcoin Reserves in Other Countries
While Switzerland remains hesitant, other nations have taken steps toward Bitcoin adoption as a reserve asset. El Salvador has been accumulating Bitcoin since September 2021, while the U.S., Czech Republic, and Hong Kong have explored similar policies. Conversely, Poland recently ruled out adding Bitcoin to its reserves, aligning with Switzerland’s cautious stance.
Despite Schlegel’s resistance, Switzerland remains a leading hub for Bitcoin adoption. The city of Lugano hosts the annual “Plan ₿” conference, promoting Bitcoin integration within local financial systems.
Additionally, several U.S. states, including Illinois, Kentucky, Maryland, New Hampshire, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, and Texas, have introduced bills that could allow them to hold Bitcoin and other cryptocurrencies as reserve assets. In Ohio, House Bill 116 was recently introduced to prevent additional taxation on digital assets when used for payments.
Bitcoin Market Outlook
As of now, Bitcoin is trading around $86,000, remaining relatively stable over the past day. Analysts at Time To Trade suggest that if Bitcoin surpasses $86,500 with strong volume, it could quickly rally toward $88,000. However, if selling pressure increases, Bitcoin may retreat to $84,000.
With ongoing debates on Bitcoin’s role in global finance, Switzerland’s rejection of Bitcoin as a reserve asset highlights the continued divide between traditional banking institutions and the rapidly evolving crypto landscape.
