Swiss National Bank Rejects Bitcoin as Reserve Asset

Highlights:

• Due to volatility and security concerns, SNB President Martin Schlegel rejects Bitcoin for reserves.
• Schlegel views cryptocurrencies as a “niche phenomenon” that does not threaten Switzerland’s official currency (CHF).
• Switzerland’s Bitcoin reserve proposal seeks 100,000 signatures for a public vote by 2026.

Swiss National Bank (SNB) President Martin Schlegel has ruled out the possibility of adding Bitcoin to Switzerland’s central bank reserves, citing its high volatility, limited liquidity, and security concerns. Schlegel emphasized that Bitcoin does not meet the stability and reliability standards required for a reserve asset.

SNB President Warns Against Bitcoin Reserves, Citing Volatility and Security Risks

Speaking to the Tamedia group on March 1, Martin Schlegel shared three concerns about cryptocurrencies. First, he pointed out their extreme volatility. He said Bitcoin and similar assets are not suitable for preserving long-term value. This instability, he stressed, makes them impractical for SNB’s investments.

Second, he noted that SNB’s reserves must remain highly liquid to ensure quick availability for monetary policy when needed.

Third, he raised security concerns, emphasizing that cryptocurrencies carry inherent risks as software-based assets that make them unsuitable as reserve holdings. “We all know that software can have bugs and other weak points,” he added.

SNB chief speaks out against Bitcoin as a currency reserve

The head of the Swiss National Bank, Martin Schlegel, has spoken out against the purchase of Bitcoin demanded by an initiative. For the National Bank, cryptocurrencies have several problems as an asset class. pic.twitter.com/eNjT8HW09w

— Bitcoin Initiative (@initiativeBTC) March 1, 2025

SNB President Views Cryptocurrencies as “Niche Phenomenon”

Schlegel argues that the SNB’s role is not to offer cryptocurrencies. He highlights that while the total value of all cryptocurrencies is about 2,000 billion Swiss francs (CHF), this is still small compared to the entire global financial system. He describes them as a “niche phenomenon,” meaning they still serve a limited role and have not gained widespread acceptance or influence in mainstream finance. “So we’re still talking about a niche phenomenon,” said the SNB president.

The Swiss central bank president also stated that he does not see Bitcoin or other cryptocurrencies posing a threat to the dominance of the Swiss franc. “We’re not afraid of competition from cryptocurrencies,” he said.

Switzerland’s Bitcoin Reserve Initiative Sparks Debate

The SNB President made these remarks as Switzerland debates the growing crypto market. A new proposal seeks a constitutional amendment to require the SNB to hold Bitcoin alongside gold in its reserves. Titled “For a Financially Strong, Sovereign, and Responsible Switzerland,” the initiative was submitted on December 5 and registered in Switzerland’s Federal Gazette on December 31.

It was launched by Giw Zanganeh, Tether’s Vice President of Energy and Mining, along with Yves Bennaïm, founder of the Swiss Bitcoin think tank 2B4CH, and eight other Bitcoin advocates.

The proposal needs 100,000 signatures to qualify for a public vote. Bitcoin supporters have until June 30, 2026, to gather them. This equals about 1.12% of Switzerland’s 8.92 million residents. If they succeed, the proposal will go to the Swiss Federal government. After that, a public vote will be held to decide on changes to the Swiss Constitution.