Swiss National Bank (SNB) President Martin Schlegel has rejected the idea of including bitcoin in Switzerland’s central bank reserves, citing concerns about stability, liquidity, and security. In an interview with the Tamedia group, Schlegel highlighted three main issues with cryptocurrencies. Firstly, their volatility makes them unsuitable for long-term value preservation. Secondly, the reserves need to be highly liquid for quick use in monetary policy, which is not possible with bitcoin. Lastly, Schlegel expressed concerns about the security risks associated with software-based assets, as software can have bugs and vulnerabilities.
Schlegel’s comments come at a time when there is a growing debate in Switzerland about the role of bitcoin in the country’s reserves. An initiative launched in December is pushing for a constitutional amendment that would require the SNB to hold bitcoin alongside gold. However, Schlegel dismissed cryptocurrencies as a “niche phenomenon” and emphasized that the Swiss franc remains strong.
Despite Schlegel’s reservations, Switzerland has seen increasing acceptance of cryptocurrencies, with several Swiss banks offering cryptocurrency-related services to their customers. However, the SNB president believes that traditional currencies have already been in competition and that the central bank is not afraid of competition from cryptocurrencies.
Overall, Schlegel’s rejection of bitcoin as part of Switzerland’s central bank reserves reflects concerns about stability, liquidity, and security. While Switzerland has embraced cryptocurrencies to some extent, the SNB remains cautious about their role in the country’s financial system.
