The Swiss National Bank (SNB) has made its stance on Bitcoin crystal clear—it’s not interested. Despite growing global adoption and a push from Swiss crypto advocates, SNB President Martin Schlegel has firmly rejected the idea of adding Bitcoin to the bank’s reserves. In a recent interview, he explained why digital assets don’t make the cut, pointing to volatility, liquidity concerns, and security risks.
What’s next?
Why the SNB Won’t Hold Bitcoin
Schlegel gave three main reasons why cryptocurrencies don’t meet the standards of a reliable reserve asset:
- High Volatility – Cryptocurrencies are extremely unpredictable, making them unreliable for storing long-term value.
- Liquidity Concerns – The SNB’s reserves must be easy to access and use quickly when needed for monetary policy. Cryptocurrencies don’t offer that level of liquidity.
- Security Risks – Since digital assets rely on software, they are vulnerable to bugs and cyber threats, making them riskier than traditional reserves.
Schlegel Disses Crypto’s Role
Schlegel also said that managing cryptocurrencies is not part of the SNB’s role, noting that the total market value of all digital assets—around CHF 2,000 billion—is still small compared to the global financial system. He called crypto a “niche phenomenon”, suggesting it is not a major financial force.
When asked whether cryptocurrencies could compete with traditional currencies, Schlegel acknowledged that currencies have always competed. However, he emphasized that the Swiss franc remains in high demand, and the SNB is not concerned about competition from digital assets.
A Push to Bring Bitcoin to the SNB
Despite Schlegel’s rejection, a proposal launched last December aims to make the SNB invest in Bitcoin. The “Bitcoin Initiative” has 18 months to collect 100,000 signatures to qualify for a public vote.
The initiative proposes that the SNB should invest some of its earnings in assets like gold and Bitcoin, though it does not specify how much Bitcoin should be held. The movement is supported by internet pioneer Yves Bennaïm and other Swiss crypto advocates, who hope to spark public debate on Switzerland’s approach to digital assets.
While the SNB sees Bitcoin as too volatile and risky, its supporters believe it’s the future of finance. Who will win?
