In a recent shareholder meeting held in Bern, Swiss National Bank (SNB) Chairman Martin Schlegel firmly dismissed proposals advocating for the inclusion of Bitcoin in the bank’s reserves. Schlegel stated, “cryptocurrency cannot currently fulfill the requirements for our currency reserves,” emphasizing the institution’s focus on stability and security amidst ongoing macroeconomic turbulence.
The call for Bitcoin reserves is gaining traction within the local crypto community. Campaigner Luzius Meisser, associated with cryptocurrency broker Bitcoin Suisse, argues that adding Bitcoin to reserves is essential, especially as global currencies like the dollar and euro continue to weaken. According to Meisser, incorporating Bitcoin into the bank’s assets could provide a hedge against these economic uncertainties.
This is not the first time Schlegel has rejected Bitcoin as a reserve asset. In earlier statements from March, he expressed concerns over the volatility and liquidity issues that cryptocurrencies pose. Reports suggest that the SNB remains cautious, prioritizing traditional assets that align closely with their risk management strategies.
In response to the growing interest in cryptocurrencies, a proposal was initiated by the Swiss Federal Chancellery towards the end of 2024, aiming to constitutionally require the SNB to hold Bitcoin on its balance sheet. The proposal seeks to collect 100,000 signatures to facilitate a national referendum.
The proposal aims to amend Article 99 of the Swiss Constitution, which currently mandates the SNB to maintain sufficient currency reserves, predominantly in gold. The proposed amendment would extend this mandate to include Bitcoin, aiming for a more diversified reserve strategy as the financial landscape evolves.
2B4CH, a nonprofit think tank supporting the initiative, emphasizes that integrating Bitcoin could potentially free the bank from political pressures linked to its foreign currency holdings. Meisser further contends that Bitcoin’s resistance to inflation through deficit spending offers a more stable alternative for reserve management.
The ongoing campaign has garnered attention from various industry players, with figures like Yves Bennaïm, a founder of 2B4CH, highlighting the rationale behind maintaining a small percentage of the bank’s reserves in Bitcoin. He suggests that with nearly 1 trillion francs in reserves, it would be wise to allocate 1-2% towards an appreciating digital asset.
Switzerland continues to establish itself as a global hub for blockchain initiatives, with Zug’s “Crypto Valley” fostering the growth of numerous startups and initiatives, including recent Bitcoin-based payment implementations by global retailers. As the region’s blockchain industry valuation soars past $593 billion, the debate over Bitcoin’s role in national financial strategy is likely to intensify.
Despite the resistance from central banking authorities, the push for Bitcoin adoption in Switzerland reflects a significant shift in how cryptocurrencies are perceived amidst global economic challenges. As the economic landscape continues to evolve, the Swiss National Bank’s decisions regarding Bitcoin may have lasting implications for the intersection of cryptocurrency and traditional finance.
