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Swiss Central Bank Rejects Bitcoin as Reserve Asset Despite $2.8T Crypto Market

Arslan Butt•Sunday, March 2, 2025•2 min read

The Swiss National Bank (SNB) has ruled out the idea of holding Bitcoin in its national reserves, despite growing interest in digital assets. SNB President Martin Schlegel stated that Bitcoin’s extreme volatility, liquidity constraints and security risks make it not suitable for a central bank’s holdings.

In response to a recent citizens’ initiative to add Bitcoin to Swiss reserves alongside gold, Schlegel said national reserves need assets with stable value and high liquidity.

He explained that Bitcoin’s price fluctuations pose significant risks and despite reaching a total valuation of $2.8 trillion, it’s still a small player in the global financial landscape.

Why Bitcoin Fails as a Reserve Asset

The SNB’s stance reflects broader concerns central banks have about cryptocurrencies:

  • Volatility: Bitcoin’s price history has been crazy, it’s not reliable for monetary stability.
  • Liquidity Challenges: Central banks need assets they can convert to cash quickly; Bitcoin’s liquidity varies a lot especially in times of crisis.
  • Security Risks: As a digital asset, Bitcoin is vulnerable to cyber attacks, software vulnerabilities and emerging regulatory risks.

Schlegel also questioned Bitcoin’s relevance in global finance, he said even with its current market cap, cryptocurrencies are a niche segment compared to traditional financial markets.

Swiss Crypto Initiative Gains Momentum

Despite the SNB’s rejection, a grassroots movement is pushing for a national debate on Bitcoin’s role in Swiss reserves. The Bitcoin Initiative Switzerland, launched in December 2024, aims to collect 100,000 signatures to trigger a national referendum.

The proposal wants to amend Switzerland’s constitution, mandating the SNB to allocate a portion of its reserves to Bitcoin and gold. It doesn’t specify an exact percentage, but proponents argue that would strengthen Switzerland’s financial independence and hedge against fiat currency risks.

As Switzerland positions itself as a global fintech leader, the debate over Bitcoin’s place in national reserves is far from over. The SNB is firm in its rejection, but with growing public interest, the issue will soon reach Swiss voters.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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