Swiss National Bank Rejects Bitcoin Reserves Amid Volatility Concerns

Highlights:

• Swiss National Bank rejects Bitcoin reserves due to high volatility and security risks.
• The SNB’s reserves aim to support monetary policy, not digital currencies.
• A public initiative in Switzerland seeks to include Bitcoin in the SNB’s reserves.

The Swiss National Bank (SNB) has dismissed prospects of including Bitcoin in its reserve. This decision comes despite rising global attention especially after the recent call by the president of the United States of America, Donald Trump, to adopt a strategic bitcoin reserve. SNB’s chief Martin Schlegel warned that the central bank does not intend to buy cryptocurrencies given the major risks involved.

The Swiss National Bank’s Stance on Bitcoin

In an interview with Bloomberg Television in Zurich Martin Schlegel explained that the SNB’s foreign exchange reserves are solely for the purposes of monetary policy in Switzerland. He emphasized that Bitcoin or any other cryptocurrencies could not meet the necessary criteria. Schlegel pointed out that the main use of foreign exchange reserves is to maintain value, while cryptocurrencies fail to provide that due to their volatility.

The central bank chief further noted that this has left the value of Bitcoin volatile and thus cannot be relied upon when it comes to storing value. Schlegel said, “Crypto assets are characterized by high volatility, thus it is not a certainty.” This aligns with his prior statements whereby he warned against digital currencies because they are volatile.

The Swiss National Bank won’t buy Bitcoin and similar digital currencies, even after President Donald Trump made a push to establish a strategic US reserve, central bank chief Martin Schlegel said https://t.co/cAUDqL7cLW pic.twitter.com/sbk4bLzCjd

— Bloomberg (@business) March 20, 2025

Security and Regulatory Concerns

Besides Bitcoin’s volatility issue, Schlegel voiced other critical issues, including security concerns and legal issues regarding cryptocurrencies. He pointed out that digital assets are vulnerable to technological hitches since they are based on software programs. This makes them prone to security risks which in turn makes them unreliable.

Schlegel also identified the absence of proper legal tender laws regarding cryptocurrencies as a further issue affecting the adoption of the central bank. He explained that although these assets are widely used, they remain vulnerable to different risks such as bugs and hacking. This makes it even more impossible for them to be part of the Swiss National Bank’s reserve.

Switzerland’s Growing Crypto Debate

Despite this SNB stance, there is rising public interest in the concept of Bitcoin reserves in Switzerland. The movement within the country has called for a referendum as to whether this should be allowed or not. The supporters of the initiative have also started signing, with the goal of collecting 100,000 signatures by June 2026. If successful, this could lead to the SNB having to change its stance.

This also aligns with current developments where several countries want to consider retaining cryptocurrencies in their foreign exchange reserves. However, the Swiss National Bank also has a skeptical attitude, calling cryptocurrencies a “niche phenomenon.” In this regard, Schlegel’s comments support this line of thought as he criticized the stability of such assets in the long run.

Many countries around the world have been building on the efforts toward the creation of Bitcoin reserves. This is driven by President Trump’s idea of having a Strategic Bitcoin reserve that has triggered such discussions in Russia, Brazil, and Poland.

Swiss National Bank’s move comes following Pakistan’s shift towards a more structured approach to cryptocurrencies. The country is establishing a legal framework to boost crypto development and attract international investors.

Pakistan’s Crypto Council CEO, Bilal Bin Saqib, outlined the country’s plan to make it a hub for crypto in South Asia. He points out the country’s market affordability, its rapid growth, and the availability of talented Web3 workers to transform the cryptocurrency industry.