Swiss National Bank Chairman Warns Bitcoin's 'Very High' Volatility Risks Currency Stability

Swiss National Bank (SNB) Chairman Martin Schlegel strongly opposed integrating bitcoin into the institution's currency reserves

Switzerland’s fierce defense of tradition faced a seismic crypto challenge as calls to add bitcoin to national reserves faced pushback, highlighting a global struggle over economic turmoil and geopolitical shifts.

Swiss National Bank (SNB) Chairman Martin Schlegel strongly opposed integrating bitcoin into the institution’s currency reserves, his comments came as the institution's shareholder assembly in Bern saw a lively discussion on the topic on April 25, according to Reuters.

As inflation fears and geopolitical shifts heighten economic uncertainty, cryptocurrency proponents have launched a referendum initiative, aiming to compel the SNB to diversify its assets by holding bitcoin alongside traditional gold reserves. They argue that such a move would protect Switzerland's wealth against systemic risks, especially following market instability partly tied to U.S. President Donald Trump's tariff policies.

However, Schlegel's remarks signaled that the central bank is likely to reject the proposals and continue holding a largely conservative stance on digital currencies despite growing external pressure.

"We are following developments in the cryptocurrency sphere closely, but we have concluded that cryptocurrency cannot currently fulfill the requirements for our currency reserves," Schlegel said during the assembly.

He explained that the SNB's currency reserve policy prioritizes assets with high liquidity, enabling rapid buying and selling of foreign exchange when necessary.

"This is not the case with cryptocurrencies, which are typically characterized by very, very high volatility. In other words, they display strong fluctuations in value over short periods of time."

This volatility poses a significant challenge for maintaining the resilience and stability of the bank's reserves, he added.

"In times of crisis, it is crucial that we can quickly intervene in the foreign exchange market to maintain the stability of the Swiss franc. Our experience shows that when we intervene massively, for instance, buying francs for several billion euros, the price does move in the desired direction. But to do so, we need assets that can be sold quickly and in large quantities without impacting market prices."

suggesting that the apex bank is likely to vote against the proposals to include bitcoin in its reserves.

This was not the first time that Schlegel expressed his opposition to a strategic bitcoin reserve. Last month, he similarly told Bloomberg Television that the SNB has no plans to buy crypto assets and its foreign-exchange reserves are strictly for implementing monetary policy.

He said digital currencies fail to meet essential requirements, such as the preservation of value, due to their significant price fluctuations. Schlegel also raised technical concerns, noting that cryptocurrencies are essentially software and vulnerable to bugs, further undermining their reliability.

Governments across the globe are increasingly engaging in discussions about establishing strategic bitcoin reserves, marking a substantial shift in the perception of cryptocurrencies as viable national assets.

In March, the United States took a pioneering step by creating a strategic bitcoin reserve through the legal seizure of BTC and forming a broader digital asset stockpile for other cryptocurrencies. This move has naturally sparked interest and similar considerations among other nations.

However, despite this global trend and the growing pressure from citizens to diversify national assets with bitcoin, some countries, such as Japan and South Korea, have opted out, rejecting proposals to include bitcoin in their reserves. These decisions are often driven by concerns over volatility, liquidity, and the overall stability of the cryptocurrency market.