- Swiss National Bank rejects Bitcoin for reserves, citing volatility; $900B portfolio stays focused on traditional currencies, gold ($94B).
- Proposal requires 100k signatures by June 30; 2021 attempt failed despite U.S. crypto shifts influencing current efforts.
Martin Schlegel, Chair of the Swiss National Bank (SNB), has ruled out adding Bitcoin to Switzerland’s $900 billion reserve portfolio, citing the cryptocurrency’s unpredictable price swings. The decision, reported by Reuters, follows a proposal by Swiss lawmakers to explore diversifying national reserves with Bitcoin. Schlegel emphasized that Bitcoin does not meet the bank’s criteria for stability, a key factor in managing reserves designed to buffer economic shocks.
To advance the proposal, supporters must gather 100,000 public signatures by June 30. A comparable effort in 2021 stalled, but proponents now hope shifting attitudes toward crypto in the U.S.—including the recent acquisition of forfeited Bitcoin by American authorities—might sway Swiss sentiment. Despite Switzerland’s reputation for fostering crypto-related businesses, Schlegel’s remarks suggest constitutional amendments to accommodate Bitcoin purchases remain unlikely.
The SNB’s reserves, valued at over $900 billion, are primarily held in foreign currencies such as the U.S. dollar and Japanese yen. Gold reserves, totaling $94 billion, make up a smaller portion. The bank’s strategy prioritizes liquidity and risk mitigation, factors incompatible with Bitcoin’s frequent price fluctuations.
Recent moves by the U.S. to hold Bitcoin seized from criminal investigations sparked speculation that other nations might follow. However, major economies have resisted. European Central Bank President Christine Lagarde has firmly opposed central banks holding Bitcoin, while Japan’s government has similarly avoided adopting it. The absence of a broader shift underscores ongoing skepticism among policymakers about Bitcoin’s role in formal financial systems.
Switzerland’s stance highlights a divide between its progressive approach to private crypto ventures and its conservative reserve management. While the country hosts numerous blockchain firms and crypto banks, Schlegel’s comments reinforce the SNB’s commitment to traditional assets. For now, the proposal to diversify reserves with Bitcoin faces steep odds, mirroring challenges seen elsewhere as governments weigh crypto’s risks against its potential.
“I have to admit it might not be worth much in scenarios that most of you consider normal,” he said. “However, bitcoin will be worth a lot in the specific scenario of a multipolar world order with fading trust in government debt.”
The debate continues as the June signature deadline approaches, testing whether public interest can override institutional caution. With global central banks largely unmoved by the U.S.’s limited Bitcoin holdings, Switzerland’s decision may further solidify the status quo.
