coinspress.com
Martin Schlegel, the President of the Swiss National Bank (SNB), has firmly dismissed the notion of allocating part of the bank's reserves to Bitcoin, arguing that cryptocurrencies lack the stability and reliability required for reserve assets.
In a recent interview with the Tamedia newspaper group, Schlegel expressed concerns about the extreme volatility of cryptocurrencies, highlighting that such assets are unsuitable for long-term reserve management. He emphasized that the SNB’s reserves must remain highly liquid to serve the bank’s monetary policy needs when necessary.
Schlegel also pointed out the security risks involved with digital currencies, noting that since cryptocurrencies are essentially software-based, they are vulnerable to bugs and other technical issues.
While the SNB maintains its cautious stance, a grassroots movement called the “For a Financially Strong, Sovereign, and Accountable Switzerland (Bitcoin Initiative)” is pushing for Bitcoin to become part of the country’s central bank reserves.
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This initiative, launched in December, aims to collect 100,000 signatures in the next 18 months to bring the proposal to a national referendum. It advocates for a constitutional amendment to require the SNB to hold a portion of its reserves in Bitcoin and gold, though the specific amount of Bitcoin to be included is yet to be defined.
Despite this growing movement, Schlegel downplayed the significance of cryptocurrencies in the global financial landscape, calling them a “niche phenomenon.” He also reaffirmed his confidence in the Swiss franc’s stability, dismissing the idea of digital assets as serious competition for traditional currencies.