Swiss National Bank (SNB) Chairman Warns Bitcoin’s ‘Very High’ Volatility Risks Currency Stability

Switzerland’s fierce defense of tradition faced a seismic crypto challenge as calls to add bitcoin to national reserves intensify amid global economic turmoil and geopolitical shifts.

Switzerland’s fierce defense of tradition faced a seismic crypto challenge as calls to add bitcoin to national reserves grew amid global economic turmoil and geopolitical shifts.

Swiss National Bank (SNB) Chairman Martin Schlegel remained opposed to integrating bitcoin into the institution’s currency reserves during the assembly of shareholders in Bern on April 25, according to a report by Reuters.

As inflation fears and geopolitical shifts deepen economic uncertainty, cryptocurrency proponents have launched a referendum initiative aiming to urge the SNB to diversify its assets by holding bitcoin alongside traditional gold reserves. They argue that such a move would better protect Switzerland’s wealth against systemic risks, especially following market instability partly linked to former U.S. President Donald Trump’s tariff policies, setting the stage for broader economic turbulence.

However, Schlegel appeared unyielding in his stance against including bitcoin in the SNB’s reserves at the assembly.

“Cryptocurrency cannot currently fulfill the requirements for our currency reserves,” he said.

The SNB’s currency reserve policy focuses on assets with high liquidity, Schlegel said, adding that this allows for rapid buying and selling of foreign exchange when necessary.

Nevertheless, he highlighted the substantial volatility inherent in cryptocurrencies, noting that they typically display “very, very high” fluctuations in value, which significantly hampers their effectiveness for maintaining the resilience and stability of the bank’s reserves. These concerns continue to drive the SNB’s conservative stance on digital currencies despite external pressure.

While the SNB remains steadfast in its opposition, the referendum effort underscores the ongoing debate over the future structure of Switzerland’s monetary safeguards.

This was not the first time Schlegel had spoken against a strategic bitcoin reserve. Last month, he told Bloomberg Television that the SNB has no plans to buy crypto assets and its foreign-exchange reserves are used 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 mentioned technical concerns, stating that cryptocurrencies are software and can have bugs, further reducing their reliability.

Governments around the world are increasingly discussing establishing strategic bitcoin reserves, marking a significant shift in the view of cryptocurrencies as national assets.

The United States took a leading step in March by establishing a strategic bitcoin reserve using BTC seized in legal cases, and also setting up a broader digital asset stockpile for other cryptocurrencies. This move has inspired similar conversations in other nations.

However, some countries have remained cautious, rejecting proposals to include bitcoin in their reserves due to concerns over volatility and liquidity. In April, the German government shot down a proposal by members of the Green Party to add bitcoin to the country’s foreign-exchange reserves.