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The Swiss National Bank (SNB) has dismissed calls to include Bitcoin in its currency reserves, citing concerns over the cryptocurrency market's liquidity and inherent volatility. SNB President Martin Schlegel addressed the matter during the bank's General Assembly meeting on Friday, according to a CoinDesk report.
"For cryptocurrencies, market liquidity, even if it may seem ok at times, is especially during crises naturally called into question," Schlegel stated. He further elaborated on the risks associated with Bitcoin's price fluctuations, saying, "Cryptocurrencies also are known for their high volatility, which is a risk for long term value preservation. In short, one can say that cryptocurrencies for the moment do not fulfill the high requirements for our currency reserves."
Schlegel's comments came in response to advocacy from the Bitcoin Initiative, a group that argues for the strategic inclusion of Bitcoin in Switzerland's treasury. The Bitcoin Initiative's research suggests that a small allocation to Bitcoin could significantly enhance the SNB's portfolio returns with only a marginal increase in overall volatility. Their analysis indicated that a mere 1% Bitcoin allocation in 2015 would have nearly doubled the SNB's investment growth since then, while the annualized volatility would have risen only slightly.
The SNB's stance aligns with that of the European Central Bank (ECB), whose President Christine Lagarde has been a vocal critic of Bitcoin, deeming it "worth nothing" and a "highly speculative asset" with links to illicit activities. Lagarde recently expressed confidence that Bitcoin would not be included in the reserves of any ECB General Council central banks. Similar rejections of Bitcoin as a reserve asset have come from the central banks of Poland and Romania.
Interestingly, while the SNB explicitly rejects direct Bitcoin holdings, CoinDesk notes that the Swiss central bank does have indirect exposure to the cryptocurrency through its investments in U.S. companies that hold Bitcoin as part of their corporate treasuries. Fintel data from the end of 2024 reportedly shows the SNB holding significant shares in companies like Strategy, Tesla, MARA Holdings, and CleanSpark, the publication reported.
Schlegel had previously dismissed citizen proposals to add Bitcoin reserves as recently as last month. He also highlighted the SNB's ongoing pilot project involving central bank digital currencies for interbank payments, indicating a focus on exploring digital innovation within traditional frameworks.
In contrast, the United States, under President Donald Trump, has taken a different approach, establishing a strategic Bitcoin reserve and a Crypto Council to explore ways to supplement U.S. digital reserves.
