SNB Rejects the Establishment of a Bitcoin Reserve

Martin Schlegel, Chairman of the Governing Board of the SNB, repeated his stance against the establishment of a Bitcoin reserve in Switzerland's treasury

Martin Schlegel, Chairman of the Governing Board of the Swiss National Bank (SNB), has once again shot down the establishment of a Bitcoin (BTC) reserve in the country’s treasury. In an interview with Bloomberg Television in Zurich, he also ruled out any push for the bank to diversify its assets with other cryptocurrencies.

The Swiss central bank chief explained that Bitcoin and other cryptocurrencies are not ideal for foreign exchange reserves. According to Schlegel, they do not align with the SNB’s goal of facilitating monetary policy.

“We have no plans to invest in Bitcoin or other cryptocurrencies,” Schlegel said. “We are focused on our mandate to maintain price stability and support the Swiss economy.”

Schlegel also pointed out that cryptocurrencies are poorly suited for value preservation due to their volatility and questioned their network integrity.

“They are basically software, which makes them vulnerable to bugs,” he added.

Crypto Initiative

The SNB has no plans to hold Bitcoin or other cryptocurrencies in its reserves despite growing pressure from cryptocurrency advocates.

Last year, they launched an initiative to amend Article 99, Clause 3 of the Swiss Constitution. They proposed that part of Switzerland’s monetary reserves should be in both gold and Bitcoin.

According to the initiative, the legal framework should be amended to allow the Swiss Confederation to hold up to 20 percent of its monetary reserves in Bitcoin. It is an adjustment of a 1990 rule that permits the country to keep a portion of its monetary reserves in gold.

The proponents have until June 2026 to gather at least a hundred thousand signatures to elevate the initiative to a plebiscite. From there, it’s up to the voters whether they would allow the rule change.

The initiative comes amid the USA’s ongoing legislative measures to permit a similar policy. Earlier this month, the SNB chairman said they are following the developments closely.

CBDC Pilot Proceeds

Despite Schlegel’s firm position against a Bitcoin or crypto reserve, the SNB continues to position itself as a pioneer in central bank digital currency (CBDC).

Recently, the central bank greenlit the rollout of the pilot program of its wholesale version on the SIX Digital Exchange.

Today, the financial institution has also posted its annual report highlighting the potential use of a synthetic CBDC. The Swiss central bank defined it as a private tokenized currency backed by its treasury. The program takes inspiration from the UK’s Fnality payment infrastructure launched in 2023.

The SNB is studying this option as an alternative to the distributed ledger technology (DLT) settlement of its tokenized private money. The other methods include the adoption of a wCBDC or a hybrid system integrating the SIX’s Swiss Interbank Clearing (SIC) payment system to the blockchain.