Swiss National Bank (SNB) President Martin Schlegel firmly rejected the idea of incorporating Bitcoin into the country’s reserve assets, citing concerns over the cryptocurrency’s volatility and security risks. Schlegel emphasized that Bitcoin does not meet the bank’s criteria for stable and liquid assets, making it unsuitable for inclusion in the Swiss central bank’s holdings.

Bitcoin’s Volatility Raises Concerns for Central Bank

Schlegel highlighted Bitcoin’s extreme price swings as a major factor in the decision. The cryptocurrency has seen dramatic fluctuations in its price, with the value surging to new highs before crashing down just as quickly. While these fluctuations may present opportunities for certain investors, central banks like the SNB are generally hesitant to invest in assets that are prone to such uncertainty, especially when they are responsible for the stability of a nation’s monetary policy.

“Bitcoin does not satisfy our requirements for stability,” Schlegel said, explaining that the asset’s inherent unpredictability makes it an unreliable choice for a central bank looking to preserve monetary stability.

Bitcoin’s track record of unpredictable price movements — including sharp rises followed by sudden drops — has made many institutions wary. For a country’s central bank, the priority is to maintain a stable monetary system, and assets like Bitcoin simply don’t provide the consistency needed for this role.

Security Risks: A Significant Concern

Another key issue cited by Schlegel was the security risks associated with Bitcoin. The cryptocurrency operates on a decentralized network, which, while offering some advantages, also exposes it to vulnerabilities. Schlegel pointed out that Bitcoin is susceptible to flaws in its software and has been a target for hackers.

Over the years, numerous cryptocurrency exchanges and wallets have been compromised, leading to the loss of billions of dollars. One of the most notable incidents was the recent $1.5 billion hack of the Bybit exchange, described as one of the largest in crypto history. These security breaches have raised serious concerns about the safety of holding Bitcoin, especially for institutions that are entrusted with safeguarding national assets.

Given the history of hacking incidents and the decentralized nature of Bitcoin, Schlegel made it clear that the SNB cannot risk holding such assets without the robust security measures required to protect them.

Swiss Nonprofit Pushes for Change

Despite the SNB’s firm stance, there is a growing push from certain factions within Switzerland to incorporate Bitcoin into the country’s reserve assets. A nonprofit think tank, 2B4CH, has been advocating for the inclusion of Bitcoin in the country’s reserves alongside traditional assets such as gold. The group has proposed a constitutional amendment that would mandate the SNB to hold Bitcoin as part of its reserves.

The proposal is still in its early stages, and 2B4CH must gather 100,000 signatures by June 30, 2026, in order to bring the issue to a national referendum. If successful, Swiss citizens would have the opportunity to vote on whether Bitcoin should be included in the nation’s reserves.

Global Perspectives on Bitcoin as a Reserve Asset

Switzerland is not the only country exploring the possibility of Bitcoin as a reserve asset. El Salvador, for instance, has been increasing its national Bitcoin holdings since 2021, and countries such as the Czech Republic and Hong Kong have also debated the potential of Bitcoin as a reserve currency. On the other hand, Poland has made it clear that it does not intend to hold Bitcoin as part of its national reserves, arguing that the cryptocurrency does not provide the necessary stability.

This global debate highlights the growing interest in Bitcoin as an alternative to traditional reserve assets, but also underscores the challenges that come with its adoption at a national level. The risk of volatility, security concerns, and regulatory hurdles remain significant barriers for many central banks.

The Future of Bitcoin as a Reserve Asset in Switzerland

For now, the SNB’s position remains unchanged, with the central bank prioritizing traditional assets over cryptocurrencies. While some advocates continue to push for the inclusion of Bitcoin, it appears that Switzerland’s central bank will continue to focus on more established reserve assets for the time being.

Although the debate surrounding Bitcoin’s role as a reserve asset is far from settled, it’s clear that many central banks, including the SNB, remain cautious about its potential. Bitcoin’s inclusion in Switzerland’s reserves is not expected to happen anytime soon, but the discussion is likely to continue as more countries evaluate the pros and cons of embracing cryptocurrency.