Swiss National Bank Rejects Bitcoin for Currency Reserves
- Swiss National Bank declines Bitcoin reserves, citing liquidity and volatility issues.
- Decision impacts crypto market sentiment.
- Advocates push for referendum on central bank’s stance.
Swiss National Bank’s President, Martin Schlegel, announced in Bern on April 25, 2025, the rejection of Bitcoin as an asset in its currency reserves.
The decision highlights ongoing liquidity and volatility concerns associated with Bitcoin, affecting the broader cryptocurrency market’s strategic directions.
Swiss National Bank Rejects Bitcoin Over Volatility Concerns
The Swiss National Bank (SNB) has firmly decided against including Bitcoin in its currency reserves. During a recent meeting, President Martin Schlegel outlined concerns over Bitcoin’s market liquidity and inherent volatility, deeming it unsuitable for long-term reserves. As Schlegel explained,
“For cryptocurrencies, market liquidity, even if it may seem ok at times, is especially during crises naturally called into question. 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.”
Proponents such as Luzius Meisser and Giw Zanganeh have spearheaded efforts to reverse this stance. They argue Bitcoin could thrive in a multipolar world order with diminished trust in government debt, advocating for its potential reserve asset status.
Crypto Advocates Push for Swiss Referendum on Bitcoin
The SNB’s decision reflects a continued cautionary stance on cryptocurrencies. Swiss crypto advocates remain vocal, pushing for a national referendum to reconsider adding Bitcoin, emphasizing its diversification benefits.
Despite the rejection, existing SNB exposure to Bitcoin remains indirectly linked through corporate equities like Tesla. However, the move signals a missed opportunity for direct asset allocation, impacting crypto market optimism.
Central Banks Skeptical of Bitcoin Amid Instability
Historically, the SNB’s refusal to adopt Bitcoin aligns with its consistent skepticism toward crypto-assets, citing liquidity and security concerns. This mirrors other central banks’ reluctance in times of fiat currency instability.
Experts suggest that while Bitcoin’s inclusion could diversify reserves, its volatility presents risks for institutional investors. The debate continues as advocates aim for constitutional changes to promote Bitcoin’s adoption in national reserves.
For more on this story, see the Swiss National Bank Rejects Calls to Add Bitcoin Reserves from Coindesk.
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