Swiss National Bank Rejects Bitcoin Reserve Proposal Amid Economic Uncertainty

According to Cointelegraph, the Swiss National Bank (SNB) has dismissed calls to incorporate Bitcoin into its reserves, despite ongoing macroeconomic challenges. SNB Chairman Martin Schlegel stated during a shareholder meeting in Bern that cryptocurrencies do not currently meet the requirements for the bank's currency reserves. This stance comes amid increasing pressure from the local crypto industry to include Bitcoin (BTC) in the central bank's reserves. Luzius Meisser, a board member of cryptocurrency broker Bitcoin Suisse, argued that holding Bitcoin is sensible as the world transitions to a multipolar order, especially given the weakening of the dollar and the euro. Schlegel has previously expressed concerns about Bitcoin's stability, liquidity, and security, reiterating his reluctance to make it a reserve asset for Switzerland. On December 31, 2024, the Swiss Federal Chancellery launched a proposal to constitutionally mandate the SNB to hold Bitcoin on its balance sheet. The initiative requires 100,000 signatures to trigger a referendum. The proposal aims to amend Article 99 of the constitution, which currently mandates the SNB to hold part of its reserves in gold. If successful, the amendment would include Bitcoin alongside gold. The campaign, supported by the Swiss Bitcoin nonprofit think tank 2B4CH, seeks to reduce the central bank's reliance on foreign currency holdings, primarily in US dollars and euros. Meisser emphasized that Bitcoin offers a hedge against political influence, as it cannot be inflated through deficit spending. Yves Bennaïm, founder and chairman of 2B4CH, suggested that allocating 1-2% of the SNB's nearly 1 trillion francs in reserves to Bitcoin could be beneficial. Switzerland remains a prominent hub for blockchain enterprises, with its "Crypto Valley" in Zug being the birthplace of Ethereum. The region continues to foster crypto initiatives, including the recent rollout of Bitcoin-based payments by global grocery giant Spar in a Swiss city. Crypto Valley's valuation surpassed $593 billion in 2024, reflecting the growth trajectory of the area's blockchain industry, which saw the emergence of 17 crypto startup unicorns last year.