2-3-2025 – Martin Schlegel, who helms the Swiss National Bank (SNB), has poured cold water on proposals to incorporate Bitcoin into Switzerland’s national reserves, dismissing cryptocurrency as a “niche phenomenon” ill-suited for central banking purposes.

The SNB President took aim at an initiative spearheaded by the 2B4CH think tank, which seeks a constitutional amendment mandating Bitcoin holdings within Switzerland’s monetary reserves. His objections centre on the digital currency’s notorious price fluctuations, which he contends would undermine the bank’s fundamental responsibility to safeguard asset values.

“Our reserves must maintain exceptional liquidity, allowing for swift deployment when monetary policy dictates,” Schlegel remarked, highlighting a core obstacle to cryptocurrency adoption within traditional central banking frameworks.

Despite Switzerland’s reputation as a cryptocurrency-friendly jurisdiction—exemplified by Lugano’s enthusiastic embrace of digital assets and its hosting of the annual “Plan ₿” conference—the central banker remains unconvinced. He expressed particular concern about the technical vulnerabilities inherent in software-based currencies, suggesting they pose unacceptable security risks for national reserves.

The constitutional initiative, officially registered with the Federal Chancellery on the final day of 2023, faces a demanding path forward. Organisers must secure 100,000 signatures by mid-2026 to trigger a nationwide referendum—a threshold representing approximately 1.11% of Switzerland’s 8.97 million citizens.

The outcome of this civic process could prove watershed for cryptocurrency integration within traditional financial systems, potentially establishing Switzerland as a pioneering nation in sovereign Bitcoin reserves. However, with the SNB’s leadership firmly opposed despite the broader crypto market’s nearly $3 trillion valuation, advocates face significant institutional resistance to their vision of monetary evolution.