- The Swiss National Bank rejected by adding bitcoin to its reserves due to high volatility.
- Citizens are pressure for a referendum to include Bitcoin for financial protection.
- Switzerland remains cautious because other countries explore Bitcoin reserves.
The famous financial conservatism of Switzerland clashed with the wave of modern crypto while the Swiss National Bank firmly rejected Bitcoin in its national reserves. While inflation problems and geopolitical tensions increase globally, supporters of digital currencies push Switzerland to adopt a more diverse approach, which includes bitcoin alongside gold. But the SNB is not convinced.
SNB president cites volatility and political concerns
During his assembly of shareholders in Bern on April 25, the president of the SNB, Martin Schlegel, rejected the idea of adopting Bitcoin in the context of the bank's reserve strategy. He pointed out that cryptocurrencies like Bitcoin are far too volatile to be considered reliable reserve assets. “Cryptocurrency cannot currently meet the requirements of our currency reserves,” said Schlegel, highlighting the need for the BNB of highly liquid and stable goods.
The recent push for Bitcoin reserves is involved while citizens are preparing a referendum initiative aimed at obliging SNB Hold bitcoin. Lawyers believe that the addition of Bitcoin helps protect the financial stability of Switzerland as part of increasing global uncertainty. In particular in the light of market volatility triggered by geopolitical events, in particular American tariff policy Under Donald Trump.
Schlegel, however, argued that SNB reserves should effectively serve the objective of monetary policy. The assets of these reserves must be easily negotiable and resistant to extreme price oscillations, the criteria that Bitcoin, in his opinion, does not meet.
Global momentum accumulates as Switzerland holds back
This is not the first time that Schlegel has expressed resistance. In March, he told Bloomberg Television that digital currencies did not have the fundamental stability required by reserve assets. He also noted that cryptocurrencies are based on software and vulnerable to technical risks such as bugs, which further reduces their relevance.
Meanwhile, the debate on National Bitcoin reserves heating on a global scale. In March, the United States made the headlines by establishing a Bitcoin strategic reserve using the crypto seized in legal affairs. Other nations explore similar movements, while some, like Switzerland, remain cautious.
Despite a growing external pressure and the evolution of global attitudes, the BNB is good, keeping the crypto firmly out of its traditional manual, at least for the moment.
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