Martin Schlegel, President of the Swiss National Bank (SNB), has rejected the idea of keeping part of the central bank’s reserves in Bitcoin, arguing that cryptocurrencies do not meet the basic characteristics of a reliable currency.
His comments, made in an interview with newspaper group Tamedia, come amid a wider debate in Switzerland over Bitcoin’s potential role in the country’s monetary policy.
Schlegel said cryptocurrencies are extremely volatile and therefore not suitable for long-term reserve management. “Our reserves need to have high liquidity so that they can be used quickly for monetary policy purposes when necessary,” he said.
He also noted the security risks associated with digital assets. “Cryptocurrencies are essentially software, and we all know that software can have bugs and other vulnerabilities,” Schlegel said.
Despite the SNB’s reservations, a grassroots initiative is pushing for Bitcoin to be made mandatory as part of the central bank’s reserves. Launched in December, the “For a Financially Strong, Sovereign and Accountable Switzerland (Bitcoin Initiative)” aims to gather 100,000 signatures within 18 months to put the proposal to a national vote.
The initiative calls for a constitutional amendment requiring the SNB to hold a portion of its reserves in Bitcoin and gold, but the proposal does not specify the exact amount of Bitcoin that would be included.
Schlegel downplayed the importance of cryptocurrencies in the global financial system, describing them as a “niche phenomenon.” He also dismissed concerns about digital assets competing with traditional currencies, reaffirming his confidence in the stability of the Swiss franc.
*This is not investment advice.
