Swiss National Bank Dismisses Bitcoin as Reserve

The Swiss National Bank has rejected Bitcoin as a reserve asset, with President Martin Schlegel citing concerns over the cryptocurrency’s volatility and insufficient liquidity for central banking operations.

Despite criticism from Cantonal Council member Reto Keller, who highlighted Bitcoin’s $1.7 trillion market capitalization, the SNB maintains its conservative stance on digital assets. A referendum proposal, requiring 100,000 signatures by June 2026, could challenge this position and reshape Switzerland’s approach to cryptocurrency reserves.

Highlights

• SNB President Martin Schlegel rejects Bitcoin as a reserve asset due to concerns over volatility and lack of stability.
• The Swiss National Bank maintains that Bitcoin fails to meet fundamental requirements for reserves, particularly high liquidity and stability.
• SNB views cryptocurrency as a niche phenomenon that poses no threat to Swiss franc stability.
• A referendum proposal has been initiated requiring 100,000 signatures to determine Bitcoin’s potential inclusion in SNB reserves.
• The central bank’s conservative stance contrasts with growing institutional interest in cryptocurrency adoption for national reserves.

Despite growing global interest in cryptocurrency adoption, the Swiss National Bank (SNB) has firmly rejected Bitcoin as a potential reserve asset, with SNB President Martin Schlegel citing significant concerns about volatility and liquidity.

“The fundamental requirements for our reserve assets include high liquidity and stability, characteristics that Bitcoin has yet to demonstrate consistently,” Schlegel stated during a recent press conference.

SNB rejects Bitcoin for reserves, citing volatility concerns and insufficient stability for central bank asset requirements.

The SNB’s position has drawn criticism from Swiss political figures, particularly Cantonal Council member Reto Keller, who challenges the central bank’s assessment. Keller emphasized Bitcoin’s substantial market capitalization of $1.7 trillion, comparable to silver, and highlighted its robust security track record. “Bitcoin’s 24/7 trading capability and proven security infrastructure make it a viable candidate for reserve consideration,” Keller argued.

In response to the ongoing debate, the Swiss Federal Chancellery has initiated a referendum proposal to determine whether the SNB should incorporate Bitcoin into its reserves. The proposal requires 100,000 signatures from Swiss citizens by June 30, 2026, to proceed to a national vote, marking a significant milestone in Switzerland’s cryptocurrency discourse.

The controversy emerges as major financial institutions project increased cryptocurrency adoption for 2025. Franklin Templeton’s latest forecast suggests multiple nations will add Bitcoin to their reserves, while recent announcements from U.S. President Donald Trump indicate plans to include various cryptocurrencies, including Bitcoin, Ethereum, and Solana, in American reserves.

Despite these developments, the SNB maintains its conservative stance, characterizing cryptocurrency as a niche phenomenon that poses no threat to the Swiss franc’s stability. “Our mandate requires us to maintain monetary stability through proven, reliable assets,” Schlegel explained, adding that the bank’s current reserve composition adequately serves its policy objectives.

The ongoing debate reflects broader tensions between traditional banking institutions and the emerging digital asset landscape, as governments worldwide grapple with evolving financial technologies.