The Swiss National Bank (SNB) has officially rejected the proposal to hold Bitcoin in the national reserve portfolio. This decision has sparked much debate in the investment community and the crypto community.

Three reasons why the SNB refuses Bitcoin

Martin Schlegel, Chairman #SNB , in an interview with Tamedia, provided three main reasons why the SNB does not consider Bitcoin a suitable asset:

  1. High volatility: Bitcoin and other cryptocurrencies frequently experience significant price fluctuations, making them unsuitable as national reserve assets.

  2. Lack of liquidity: The SNB requires that reserve assets have high liquidity to be able to mobilize quickly when needed.

  3. Security risks: Bitcoin is still a type of software, and like any software, it may have security vulnerabilities or be attacked.

For the above reasons, the SNB announced that it would not invest in Bitcoin or other cryptocurrencies.

Is Bitcoin just a "niche phenomenon"?

Schlegel emphasized that the SNB has no responsibility to promote cryptocurrencies and believes that it remains a "niche phenomenon" in the financial system. Although the market capitalization of cryptocurrencies has reached 2 trillion #CHF , this number is still very small compared to the entire global financial system.

When asked whether the SNB is concerned that cryptocurrencies will compete with the Swiss franc, Schlegel emphatically replied: “Currencies always have competition, but the Swiss franc is still widely trusted, and we are not concerned about cryptocurrencies.”

The Bitcoin initiative is still ongoing

Although the SNB rejects Bitcoin, a group supporting cryptocurrency in Switzerland remains determined to promote an initiative to force the SNB to invest in $BTC .

The initiative named "For a strong and financially sovereign Switzerland" was launched in December 2023, aiming to call on the SNB to accumulate reserves in gold and Bitcoin. The supporting group has 18 months to collect 100,000 signatures, qualifying for a referendum.

The leader of this initiative is Yves Bennaïm, an Internet pioneer in Switzerland. Mr. Bennaïm emphasizes that the main goal is not only to force the SNB to invest in Bitcoin but also to expand the debate about the role of Bitcoin in the national financial system.

While the SNB refuses Bitcoin, U.S. President Donald Trump is directing the establishment of a national crypto reserve, including coins like $XRP , $SOL , and ADA, causing much controversy in the financial community. #anhbacong