Switzerland’s central bank has made it clear—Bitcoin will not be part of its national reserves anytime soon. Martin Schlegel, President of the Swiss National Bank (SNB), dismissed the idea, citing volatility, liquidity concerns, and security risks as key reasons against adding BTC to Switzerland’s financial reserves.
His remarks come in response to a growing movement within the country advocating for Bitcoin and gold-backed reserves to secure the Swiss economy. However, Schlegel pushed back, arguing that Bitcoin’s price swings make it an unreliable asset for a national treasury.
Why the SNB Says No to Bitcoin
Volatility Risks: Schlegel emphasized that Bitcoin’s extreme price fluctuations make it unsuitable for long-term reserves. A central bank must prioritize stability, which Bitcoin cannot guarantee.
Liquidity Concerns: According to Schlegel, the SNB requires assets that can be easily converted into cash to facilitate monetary policy actions. While gold and foreign currency reserves serve this role effectively, Bitcoin, with its unpredictable market movements, does not.
Security Issues: Bitcoin is built on software, which, despite its decentralized nature, is still vulnerable to hacks, bugs, and other cybersecurity threats. Schlegel pointed out that a national reserve cannot rely on an asset that carries such technological risks.
Crypto’s Role in Global Finance
Despite Bitcoin’s growing adoption worldwide, Schlegel also downplayed its broader financial influence. He noted that the total market capitalization of all cryptocurrencies, currently around $2.8 trillion, remains relatively small compared to traditional financial markets.
This stance aligns Switzerland with other major economies that remain cautious about using crypto as a national financial instrument. However, Switzerland remains a leading hub for blockchain innovation, with its Crypto Valley in Zug being home to major blockchain firms, including Ethereum.
What’s Next?
The rejection doesn’t mean the conversation is over. With crypto advocates in Switzerland pushing for Bitcoin and gold reserves, the debate over crypto’s role in traditional finance is far from settled.
For now, the Swiss National Bank is standing firm in its position—Bitcoin is not ready to be a national reserve asset. However, as the crypto market matures and adoption grows, Switzerland’s stance may evolve in the years to come.
