Swiss National Bank Declines Bitcoin Reserve Proposal

Swiss National Bank, led by Martin Schlegel, rejected Bitcoin holding for reserves in Switzerland citing volatility risks.

The decision highlights the ongoing debate on Bitcoin as a reserve asset, affecting its adoption narrative but not immediate financial markets.

Swiss Bank Cites Bitcoin Volatility in Reserve Rejection

The Swiss National Bank reaffirmed its stance by rejecting a proposal to include Bitcoin in its reserves. Concerns about Bitcoin’s volatility and liquidity were key in the decision.

Martin Schlegel, the SNB’s president, emphasized that market volatility does not meet requirements for national reserves. The proposal faced advocacy from the Bitcoin Initiative.

“Cryptocurrencies also are known for their high volatility, which is a risk for long term value preservation. In short, one can say that cryptocurrencies for the moment do not fulfill the high requirements for our currency reserves.” – Martin Schlegel, President, Swiss National Bank

Bitcoin’s Non-Impact on Swiss Financial Stability

The decision results in no direct financial impact but fuels skepticism about Bitcoin’s reserve status. Investors see continued reliance on traditional assets like gold.

Financial experts debate the missed potential of Bitcoin in a multi-polar economy. Swiss crypto community pushes for a broader diversification strategy.

Central Banks Continue Cautious Stance on Crypto

Similar to previous central banks’ responses, the SNB decision aligns with the global trend of cautious approaches to digital currencies in reserves.

Experts predict prolonged debates on digital assets as reserves. Bitcoin’s role in emerging economies and institutions remains a focal discussion amid evolving markets.