Swiss National Bank Rejects Bitcoin Reserve Push

Despite mounting calls, the SNB remains firm. In a recent meeting, SNB Chairman Martin Schlegel dismissed the idea, calling Bitcoin too volatile for Switzerland's official reserves.

As inflation worries rise and economic uncertainty deepens, Switzerland is facing fresh pressure to rethink its Bitcoin reserve strategy. A group of crypto advocates has launched a referendum, aiming to spur the Swiss National Bank (SNB) to add Bitcoin to its reserves alongside gold as a safeguard against global instability.

However, the SNB remains uninterested in this proposal, preferring to stick with traditional assets for now.

SNB Rejects Bitcoin for Now, Emphasizing Stability Concerns

Despite the initiative and growing interest in Bitcoin, SNB Chairman Martin Schlegel recently shot down the idea during a parliamentary meeting. Schlegel acknowledged the initiative and the initiative's goal to "safeguard value in times of global instability."

However, he explained that Bitcoin is currently too volatile and unpredictable for Switzerland's official reserves.

"We need assets that are highly liquid and stable in value, and we prefer to invest in assets that are not threatened by liquidity or solvency risks," Schlegel explained. He pointed out that the Swiss economy faces internal and external imbalances, leading to a weaker currency and rendering it difficult to generate inflation.

Furthermore, Schlegel expressed concerns over Bitcoin's reliability. He explained that, being a software-based asset, it could face technical glitches.

"The goal of the mandate is clear: we manage the reserves in the best interest of the Confederation and taking optimal care of the assigned assets. At present, we have no intention of incorporating crypto into our reserve strategy."

Global Trends: US Builds Bitcoin Reserve, Other Countries Take Note

While Switzerland maintains a cautious stance on crypto regulation, other countries are beginning to explore different paths. The United States, for instance, has started building a Bitcoin reserve using coins seized from criminal investigations.

This move, which began in 2022 with the accumulation of BTC seized during operations targeting dark web marketplaces, is slowly filling the government's cold wallets.

While many governments are still hesitant due to extreme price volatility and operational risks, they are keeping a close eye on developments in the crypto sphere.

The growing debate over Switzerland's crypto regulation and Bitcoin reserve strategy suggests that pressure on the SNB may not ease anytime soon.

This article originally appeared on CCXV.