Although cryptocurrencies are becoming increasingly popular in Switzerland, the SNB president described them as a “narrow phenomenon.”
March 1, 2025, 18:31 UTC
Key points:
- Martin Schlegel, president of the Swiss National Bank (SNB), has rejected a proposal to include Bitcoin in the central bank's reserves.
- Among the reasons he gives for opposing the move, Schlegel cited volatility, liquidity concerns and security risks.
- His comments come amid a Swiss citizen initiative calling on the Swiss National Bank to hold bitcoin and gold in its reserves.
Swiss National Bank (SNB) President Martin Schlegel has rejected the idea of holding bitcoins as part of the central bank's reserves, citing a lack of stability, liquidity and security, local news sources reported.
Speaking to the Tamedia group, Schlegel highlighted three main problems with cryptocurrencies. The first is their volatility, which he says makes them unsuitable for long-term storage of value.
“Secondly, our reserves must be highly liquid so that they can be quickly used for monetary policy purposes if needed,” Schlegel told Tamedia, adding that software-based assets have security flaws. “We all know that software can contain bugs and other vulnerabilities.”
The SNB president's comments come amid growing debate in Switzerland about a new asset class. A recent initiative proposes amending the constitution to require the SNB to hold bitcoin in its reserves alongside gold, according to the article.
The initiative, launched in December and led by entrepreneur Yves Bennaim, does not specify how exactly the bitcoins will be distributed, but says they should come from the bank's revenues. Organizers have 18 months to collect 100,000 signatures to trigger a national vote on the issue.
Despite the growing acceptance of cryptocurrencies in Switzerland, with various Swiss banks offering crypto-related services to clients, Schlegel described the asset class as a “niche phenomenon.” He noted that currencies are already competing, and banks are not afraid of competition from cryptocurrencies, citing the continued strength of the Swiss franc.
