Swiss National Bank (SNB) President Martin Schlegel has reportedly expressed his reluctance to designate Bitcoin as a reserve asset in Switzerland, citing concerns about its stability, liquidity, and associated security risks.
Schlegel’s stance contradicts a proposal from the Swiss Bitcoin nonprofit think tank 2B4CH and other Bitcoin supporters who are advocating for a constitutional requirement for the SNB to hold Bitcoin (BTC) on its balance sheet.
In an interview with Swiss local media outlet Tamedia, Schlegel stated that the volatility of Bitcoin and other cryptocurrencies undermines the stability needed for the SNB’s investments.
“Additionally, our reserves must maintain a high level of liquidity so they can be quickly utilized for monetary policy if necessary,” Schlegel mentioned to Tamedia on March 1.
Source: Bitcoin Initiative
He also highlighted that the nature of Bitcoin and cryptocurrencies, which rely on software, makes them susceptible to bugs and technical vulnerabilities:
“We all know that software can have bugs and other weak points.”
Although Schlegel acknowledged that the crypto market encompasses nearly $3 trillion in value, he characterized the industry as a “niche phenomenon” within the larger financial landscape.
The Swiss central bank president further remarked that he does not see Bitcoin or cryptocurrencies as a threat to the Swiss franc:
“We’re not afraid of competition from cryptocurrencies.”
The initiative by 2B4CH was initiated by the Swiss Federal Chancellery on December 31, requiring 100,000 signatures to be presented for a public referendum.
They have until June 30, 2026, to gather the required 100,000 signatures, giving them about 16 months from now.
With a population of 8.97 million in Switzerland, this means that around 1.11% of residents must sign the petition.
Related: Trump to host first White House crypto summit on March 7
Despite Schlegel’s reservations, Switzerland remains one of the frontrunners in Bitcoin adoption, particularly in Lugano, which hosts the annual “Plan ₿” conference.
Currently, a Bitcoin reserve is under consideration in the US, Czech Republic, and Hong Kong, while El Salvador has been consistently adding at least one Bitcoin to its treasury since launching in September 2021.
Poland has recently eliminated the possibility of adopting Bitcoin as a reserve asset.
Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle
