Switzerland, a country already known for its progressive stance on cryptocurrencies, is considering a bold move to incorporate Bitcoin into its national reserves, alongside traditional assets like gold. This proposal has drives discussions across the country, with crypto advocates pushing for a constitutional amendment to allow the Swiss National Bank (SNB) to hold Bitcoin as part of its reserve assets.
The proposal was officially initiated by the Swiss Chancellery in April 2024, with a formal registration taking place on December 31st, 2024. It aims to amend Article 99 of the Swiss Federal Constitution, which currently restricts the SNB from holding anything other than gold in its reserves. If successful, the amendment would allow the Swiss National Bank to hold Bitcoin alongside gold, further integrating the cryptocurrency into the nation’s financial system.
The initiative is supported by a group of crypto advocates, including Giw Zanganeh, Vice President of Energy and Mining at Tether, and Yves Bennaïm, founder of the Swiss-based think tank 2B4CH. These supporters argue that now is the ideal time for Switzerland to embrace Bitcoin as a reserve asset, given the growing acceptance of cryptocurrencies globally.
For the proposal to move forward, it must first gather 100,000 signatures from Swiss citizens within the next 18 months. This threshold represents approximately 1.12% of Switzerland’s population of 8.9 million. If the campaign succeeds in collecting the required signatures, the proposal will be forwarded to the Swiss Federal Assembly for further review and potential approval.
This effort marks a shift from a similar attempt in 2021, which was postponed due to a lack of public and institutional support. Proponents of the current proposal believe that conditions are more favorable now, given the growing interest in cryptocurrencies and their potential to serve as a hedge against inflation and economic instability.
Switzerland has long been a global leader in crypto adoption. The city of Lugano has become a hub for cryptocurrency use, allowing residents to pay taxes using Bitcoin. Additionally, the “Plan ₿” conference, which is held annually in Lugano, brings together thought leaders in the crypto space.
The country is also home to Zug’s Crypto Valley, a thriving blockchain ecosystem that houses over 1,200 companies focused on blockchain technology, including 13 unicorns—companies valued at over $1 billion. Switzerland’s openness to cryptocurrencies has made it an attractive destination for blockchain companies and investors alike.
Despite the growing support for the initiative, the proposal faces significant challenges. One of the primary concerns comes from Martin Schlegel, Chairman of the Swiss National Bank, who has raised doubts about Bitcoin’s volatility and energy consumption. Bitcoin’s price fluctuations and its environmental impact, particularly its energy-intensive mining process, remain significant issues for regulators and central banks worldwide.
Additionally, Switzerland’s Financial Market Supervisory Authority (FINMA) has expressed concerns about the potential money laundering risks associated with Bitcoin. These concerns have prompted calls for more regulation and oversight of the cryptocurrency sector, particularly as it becomes more integrated into the traditional financial system.
If the proposal is successful, Switzerland would join a select group of countries that have adopted cryptocurrencies into their national financial strategies. The move would not only boost Bitcoin’s legitimacy but could also set a precedent for other nations to follow suit.
However, for Switzerland to move forward with adding Bitcoin to its national reserves, it will need to overcome significant regulatory and political hurdles. The debate over Bitcoin’s role in national reserves will likely continue to evolve, with the future of this initiative depending on both public support and the Swiss government’s willingness to navigate the complexities of cryptocurrency adoption.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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