Swiss National Bank Says No Place for Bitcoin as Reserve Asset

Swiss National Bank (SNB) Governor Martin Schlegel has again dismissed the idea of adding Bitcoin (BTC)  or other digital assets to the central bank’s foreign exchange reserves. In a recent interview with Bloomberg, Schlegel pointed to Bitcoin’s high volatility, instability, and regulatory issues as key reasons for his stance.

SNB Cites Excess Energy Use and Crime Concerns

According to Schlegel, the SNB’s reserves must support monetary policy, and digital assets do not fit this purpose. His latest comments align with his previous statements from November 2024, in which he described cryptocurrencies like Bitcoin and Ethereum (ETH) as niche assets. 

He argued that these asset classes are unsuitable for payments due to their unpredictable price movements. The SNB Governor also raised concerns about the environmental impact of cryptocurrency mining. Bitcoin, in particular, requires massive amounts of energy to operate. 

Additionally, he warned that associating virtual assets with illegal activities makes its regulation even more challenging.

Despite Schlegel’s doubts, Bitcoin advocates in Switzerland continue to push for change. The 2B4CH proposal, officially launched on December 31, 2023, aims to add Bitcoin to Switzerland’s federal constitution as part of the country’s monetary system. 

The initiative will trigger a public referendum if it gathers 100,000 signatures by June 30, 2026. This will allow Swiss citizens to vote on whether Bitcoin should be officially recognized as a reserve asset alongside traditional currencies.

A Broader Industry View on Bitcoin 

Switzerland is not alone in dismissing Bitcoin as part of its central bank reserves. Many other financial institutions and countries such as Canada, China, and Japan have also taken a cautious or outright negative stance on holding Bitcoin. This is due to concerns over volatility, regulatory uncertainty, and security risks.

In contrast, while most central banks and countries doubt or reject Bitcoin as a reserve asset, some countries, including the United States, El Salvador, Brazil, and Argentina, have embraced the idea. 

Blockchain Adoption Grows in Switzerland

Switzerland has been recognized as a center for blockchain technology and crypto innovation. BX Digital, the Swiss branch of Germany’s Stuttgart Stock Exchange, recently received approval from the Swiss Financial Market Supervisory Authority to introduce a blockchain-based trading system. 

This platform will enable faster asset transfers by eliminating intermediaries and reducing transaction costs. Last month, Nexo also expanded its Nexo Card to Switzerland and Andorra as part of its 2025 Growth Plan. The card, which offers debit and credit functions, has already been adopted by 62% of eligible users in the European Economic Area.

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