Samuel Kullmann, a Swiss lawmaker, is leading an ambitious campaign to include Bitcoin in Switzerland’s national reserve. With support from the growing crypto community, Kullmann has initiated a push to amend the country’s constitution and compel the Swiss National Bank (SNB) to hold a portion of its financial reserves in Bitcoin. The campaign, which requires 100,000 signatures before being tabled for a referendum, is beginning to gather momentum.

The legislative proposal has already gained some traction, as Swiss crypto advocates have forwarded a plan to the government urging the SNB to diversify its reserves by including Bitcoin alongside traditional assets like gold. Despite this push, the idea has faced strong skepticism, particularly from those wary of Bitcoin’s volatility and its suitability as a reserve asset.

SNB Chairman Doubts Bitcoin’s Role in National Reserve

Although Bitcoin’s influence in the financial world is undeniable, there are significant concerns regarding its role in Switzerland’s financial system. Martin Schlegel, Chairman of the Swiss National Bank, has publicly questioned the inclusion of cryptocurrencies like Bitcoin in the national reserve. Schlegel emphasized that digital currencies remain a niche market, pointing to their inherent volatility as a major obstacle to their adoption as stable reserve assets.

At a recent event in Brugg, Schlegel acknowledged Bitcoin’s growth but expressed doubts about its practical use in a national reserve. He pointed out the challenges posed by Bitcoin’s price fluctuations, which could undermine its reliability as a store of value or a medium of exchange. Schlegel also raised concerns over the environmental impact of Bitcoin mining and its association with illegal activities, further complicating its acceptance within traditional financial frameworks.

While Schlegel has not taken a firm stance on Bitcoin’s future, his remarks reflect broader reservations among the Swiss financial establishment regarding the crypto sector’s role in national monetary policy.

Skepticism Surrounding the Proposal

The proposal to amend Switzerland’s constitution to include Bitcoin in the national reserve has not been universally welcomed. Many Swiss citizens and online commentators remain skeptical about the initiative’s chances of success. Critics, like the user @PB3g3r, argue that the proposal is more of an educational or political maneuver than a genuine attempt to bring Bitcoin into the country’s monetary system. Some believe that Swiss voters will not endorse such a move, as they trust the Swiss National Bank to manage reserves responsibly without the need for cryptocurrency.

Similarly, Till Könneker, a social media user, remarked on X that “Swiss democracy works in a way that people will never vote for this,” dismissing the proposal as unlikely to pass in a referendum. This sentiment reflects a broader hesitancy within the population to embrace Bitcoin at a constitutional level.

Bitcoin’s Growing Influence in Switzerland

Despite the skepticism, the movement to integrate Bitcoin into the Swiss constitution is not without precedent. Earlier in 2024, the Canton of Bern parliament approved a motion to explore Bitcoin mining as a way to utilize surplus energy and reduce electricity costs. This motion, which garnered support from five political parties, passed by a decisive vote of 85 to 46 in the Grand Council.

The proposal, backed by Kullmann, calls for a study into how Bitcoin mining can repurpose excess energy to create economic opportunities. The approval of this motion has bolstered Kullmann’s belief that Bitcoin can be successfully integrated into Switzerland’s constitutional framework. He is optimistic that the referendum will gain enough support to bring Bitcoin into the national conversation and position it as a key asset for Switzerland’s future financial strategy.

Conclusion

Switzerland’s push to include Bitcoin in its national reserve is an ongoing debate marked by both enthusiasm and skepticism. As the proposal moves closer to a referendum, the country faces critical decisions about whether to embrace digital currencies as part of its national financial infrastructure. While some voices continue to resist, the growing momentum for Bitcoin and its increasing legitimacy in the financial world suggest that this debate is far from over.