Swiss National Bank Crucially Rejects Bitcoin Reserve Calls Amid Industry Pressure

The debate around central banks adopting Bitcoin continues to heat up, especially in crypto-forward nations like Switzerland. The Swiss National Bank (SNB) recently addressed calls to integrate the digital asset into its reserve holdings, delivering a clear message that pushes back against the growing sentiment for Bitcoin adoption.

Why the Swiss National Bank is Hesitant on Bitcoin Reserves

During a recent shareholder meeting in Bern, Swiss National Bank Chairman Martin Schlegel explicitly stated that cryptocurrency does not currently meet the requirements for the institution’s currency reserves. This stance isn’t new; Schlegel has previously voiced concerns about Bitcoin’s suitability for central bank holdings.

The primary reasons cited by the SNB for dismissing the idea of holding Bitcoin reserves include:

• Lack of Stability: Bitcoin’s price volatility is a significant concern for maintaining stable currency reserves.
• Liquidity Issues: While improving, the scale and ease of converting large amounts of Bitcoin without market impact are questioned for central bank operations.
• Security Risks: Concerns around custody, hacking, and the overall security infrastructure needed for holding significant digital assets at a national level remain.

These factors underscore the conservative approach central banks typically take regarding their reserve assets, prioritizing stability and security above all else.

Pressure Mounts for Switzerland Bitcoin Adoption

Despite the SNB’s cautious position, there is significant pressure from the local crypto industry and advocates to consider Switzerland Bitcoin integration. Campaigners argue that holding Bitcoin could serve as a crucial hedge against global macroeconomic instability and the weakening of traditional fiat currencies like the dollar and euro.

Luzius Meisser, a board member of Bitcoin Suisse, is a prominent voice in this movement, suggesting that a multipolar world order makes holding decentralized assets like Bitcoin increasingly sensible. He believes it offers a hedge against political influence inherent in foreign currency holdings.

The Push for SNB Bitcoin Holdings Through Constitutional Change

The advocacy for SNB Bitcoin reserves isn’t just talk; it’s backed by a concrete initiative aiming for a constitutional amendment. A proposal initiated at the end of 2023 seeks to constitutionally mandate the Swiss National Bank to hold Bitcoin on its balance sheet. This initiative requires gathering 100,000 signatures to trigger a national referendum.

The proposed change targets Article 99 of the Swiss constitution, which currently mandates holding currency reserves, including gold. The initiative proposes adding Bitcoin to this requirement. The Swiss Bitcoin non-profit think tank 2B4CH has been instrumental in preparing and submitting the necessary documents for this campaign, highlighting the organized effort behind the push.

Yves Bennaïm, founder of 2B4CH, clarifies that the goal isn’t to go ‘all in’ on Bitcoin but to allocate a small percentage (1-2%) of the SNB’s nearly 1 trillion francs in reserves to an asset proponents believe is increasing in value and security.

Switzerland’s Reputation as a Crypto Valley Switzerland Hub

This debate occurs against the backdrop of Switzerland’s established reputation as a leading crypto and blockchain hub. The region known as Crypto Valley Switzerland, centered around Zug, is a global focal point for blockchain innovation. It was notably where Ethereum was founded.

The Swiss ecosystem continues to grow, attracting businesses and fostering initiatives. The Crypto Valley surpassed a $593 billion valuation in 2024, demonstrating significant industry growth. Examples like global retailer Spar rolling out Bitcoin payments in a Swiss city earlier this month further highlight the nation’s progressive stance on crypto adoption at the commercial level, contrasting somewhat with the central bank’s caution.

Conclusion: A Standoff Between Caution and Innovation

The Swiss National Bank’s clear dismissal of adding Bitcoin to its reserves highlights the fundamental differences in perspective between traditional central banking priorities and the arguments put forth by the crypto industry. While the SNB prioritizes stability, liquidity, and security risks inherent in volatile assets, proponents see Bitcoin as a necessary hedge and a shield against political influence.

The ongoing constitutional initiative underscores the determination of the Swiss crypto community to push for mainstream adoption at the highest level. As Switzerland continues to thrive as a crypto hub, the tension between the central bank’s cautious approach and the industry’s innovative drive will likely remain a key narrative in the global discussion about Bitcoin’s role in national finance.