President of the Swiss National Bank Martin Schlegel explained why Bitcoin not suitable for the role of a reserve asset.
According to Schlegel, BTC does not meet the basic characteristics that a reserve asset should have. This is because:
- The cryptocurrency rate is very volatile, so in the long term, investing in bitcoins can result in losses;
- BTC is not liquid enough;
- The digital asset is not reliable, as the blockchain software may contain bugs that hackers can use to carry out a cyber attack.
Martin Schlegel
Martin also noted that cryptocurrencies are a “niche phenomenon” due to their small market cap compared to traditional assets like gold, which is worth $19,3 trillion. Meanwhile, the market cap of all digital assets combined is only $2,8 trillion. Given this fact, Schlegel believes that Bitcoin does not pose a threat to the Swiss franc because it cannot compete with the Swiss national currency.
In December 2024, Switzerland created petition , which is designed to force the central bank to buy bitcoins. The activist group, led by writer Yves Bennaim, has 18 months to collect 100,000 signatures. However, given the rhetoric of the head of the Swiss National Bank, it is clear that even if the activists are successful, officials are unlikely to agree to invest budget funds in cryptocurrency.
