The president of the Swiss National Bank (SNB), Martin Schlegel, has stated that Switzerland will not be adding Bitcoin to its national reserves. Schlegel cited concerns over the cryptocurrency’s volatile price, its limited liquidity, and inherent security vulnerabilities as reasons for the decision.
His comments came in response to a campaign by Bitcoin advocacy group 2B4CH, which is aiming to initiate a public referendum to require the SNB to include Bitcoin on its balance sheet. The initiative, which originated in the Swiss Federal Chancellery in late 2023, needs 100,000 signatures by mid-2026 to proceed.
Concerns Over Volatility and Liquidity
Schlegel argued that Bitcoin’s extreme price swings make it unsuitable for preserving the value of the national reserve. He stressed the importance of the SNB holding highly liquid assets, enabling quick responses to monetary policy needs. According to Schlegel, readily convertible assets are crucial for maintaining financial stability during market volatility.
Security Challenges of Digital Assets
A key factor in the decision is the potential risk associated with digital assets’ reliance on software systems. Schlegel emphasized that these systems, like all software-driven platforms, are susceptible to bugs and technical deficiencies. Such vulnerabilities increase the risk of security breaches, which pose a significant threat to a nation’s financial security.
Perspective on the Crypto Sector
Despite the crypto market’s growth, the head of the SNB downplayed its overall significance. He characterized the cryptocurrency sector as a niche market that poses no significant threat to the traditional financial system. He also dismissed the idea that Bitcoin could present substantial competition to the Swiss franc, emphasizing that the challenges posed by cryptocurrency do not translate into direct competition for the national currency.
For more detailed information, please see the report on the Swissinfo website: read more here.
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