Key Takeaways
- The Swiss National Bank refuses to add Bitcoin to its reserves due to volatility and liquidity concerns.
- A citizen's initiative seeks to force a referendum to mandate Bitcoin as a reserve asset.
- Switzerland's Crypto Valley hit a $593 billion valuation in 2024 despite the SNB's resistance.
The Swiss National Bank (SNB) has firmly rejected proposals to add Bitcoin to its official reserves, maintaining a cautious stance even as global interest in Bitcoin grows.
Chairman’s statement on Bitcoin
At the SNB’s annual general meeting on April 25 in Bern, Chairman Martin Schlegel emphasized that Bitcoin does not meet the bank’s strict criteria for reserve assets.
Schlegel, citing concerns over volatility and lack of liquidity, said:
Cryptocurrency can’t fulfill our currency reserve requirements.
He added:
Cryptocurrencies are also known for their high volatility which is a risk for long-term value preservation.
Citizen’s initiative for Bitcoin referendum
Despite this opposition, Swiss Bitcoin advocates have launched a citizen’s initiative to force a national referendum that would require the SNB to hold Bitcoin alongside gold.
The movement, backed by figures like Bitcoin Suisse board member Luzius Meisser, argues that Bitcoin could protect Switzerland’s wealth during financial instability.
Meisser stated during the meeting:
Bitcoin will be worth a lot in the scenario of a multipolar world order with fading trust in government debt.
Constitutional amendment proposal
The proposal seeks to amend Article 99 of the Swiss Constitution.
Organizers must collect 100,000 valid signatures within 18 months to trigger a vote.
Thriving Bitcoin sector in Switzerland
Meanwhile, Switzerland’s Bitcoin sector continues to thrive.
Crypto Valley in Zug reached a $593 billion valuation in 2024, and several cities are piloting Bitcoin payment systems.
However, the SNB leadership remains unmoved, pointing to Bitcoin’s volatility, liquidity risks, and technical vulnerabilities as reasons it is unsuitable for national reserves.
