Swiss National Bank (SNB) President Martin Schlegel has rejected the idea of making Bitcoin a reserve asset for Switzerland, citing multiple concerns about the cryptocurrency's suitability for national reserves.
In a recent interview with Swiss media outlet Tamedia, Schlegel highlighted three main issues with Bitcoin as a reserve asset: extreme price volatility, insufficient liquidity, and technical security risks.
"Our reserves need to be highly liquid so they can be used quickly for monetary policy purposes if needed," Schlegel explained, emphasizing that Bitcoin's volatility makes it unsuitable for maintaining stable value in national reserves.
The SNB president also expressed concerns about the technical vulnerabilities inherent in cryptocurrency software, noting that "software can have bugs and other weak points."
While acknowledging that the crypto market holds nearly $3 trillion in value, Schlegel described it as a "niche phenomenon" compared to traditional financial systems. He dismissed concerns about cryptocurrency competing with the Swiss franc, stating "We're not afraid of competition from cryptocurrencies."
The discussion comes amid a proposal from Swiss Bitcoin nonprofit think tank 2B4CH to make Bitcoin holdings mandatory for the SNB. The initiative needs 100,000 signatures by June 2026 to trigger a public referendum.
Despite Schlegel's stance, Switzerland remains a hub for Bitcoin adoption, particularly in Lugano, which hosts the annual "Plan ₿" conference. While countries like El Salvador have embraced Bitcoin as a reserve asset, others including Poland have ruled out the possibility.
The debate over Bitcoin as a reserve asset continues globally, with similar discussions ongoing in the United States, Czech Republic, and Hong Kong.