Swiss bank chief rejects Bitcoin for national reserves

Swiss National Bank (SNB) President Martin Schlegel has dismissed the idea of including Bitcoin (CRYPTO:BTC) as part of Switzerland's central bank reserves, citing concerns over stability, liquidity, and security.

Schlegel's stance opposes a proposal to constitutionally mandate the SNB to hold Bitcoin on its balance sheet.

Speaking to Tamedia, a Swiss media outlet, Schlegel stated that Bitcoin and other cryptocurrencies are too volatile to maintain the value of SNB’s investments.

"Second, our reserves need to be highly liquid so that they can be used quickly for monetary policy purposes if needed," he added.  

"We all know that software can have bugs and other weak points," Schlegel noted that because Bitcoin and cryptocurrencies are software-based, they are inherently susceptible to bugs and technical vulnerabilities.

Despite the crypto market securing nearly $3 trillion worth of value, Schlegel considers it a "niche phenomenon" compared to the broader financial system.

"We’re not afraid of competition from cryptocurrencies," he also expressed confidence in the Swiss franc.

The proposal to mandate the SNB to hold Bitcoin is driven by the Swiss Bitcoin nonprofit think tank 2B4CH and other advocates.

The initiative requires 100,000 signatures by June 30, 2026, to trigger a public referendum.

Switzerland has a population of 8.97 million, meaning approximately 1.11% of residents must sign the petition.

Despite Schlegel’s reservations, Switzerland remains a leading country for Bitcoin adoption, particularly in Lugano, the host city for the annual "Plan ₿" conference.

Other regions, including the U.S., Czech Republic, and Hong Kong, are also considering Bitcoin reserves, while El Salvador continues to add Bitcoin to its treasury.

Poland, however, has rejected the possibility of making Bitcoin a reserve asset.

At the time of reporting, the Bitcoin (BTC) price was $92,595.02.