The Swiss National Bank (SNB) President, Martin Schlegel, has indeed dismissed the idea of Bitcoin being a reserve asset, citing concerns over its volatility, liquidity, and security risks. #BTCvsMarkets
Here's why
Volatility: Schlegel believes Bitcoin's rapid price fluctuations make it unsuitable for maintaining the value of SNB's investments.
Liquidity: The SNB requires assets that can be quickly converted into cash for monetary policy purposes. Bitcoin, according to Schlegel, falls short of this criterion.
Security Risks: Schlegel highlights the potential for software bugs, cyberattacks, and other technical vulnerabilities associated with cryptocurrencies.
Despite these concerns, Switzerland has a growing interest in Bitcoin, with some advocating for its inclusion in the country's reserves. A proposal by Swiss Bitcoin nonprofit think tank 2B4CH aims to constitutionally mandate the SNB to hold Bitcoin, but it faces significant opposition from the SNB. To move forward, the proposal needs 100,000 signatures by June 30, 2026, to trigger a public referendum ¹ ².
Interestingly, while the SNB is cautious about Bitcoin, other countries have adopted different approaches:
El Salvador: Continues to add Bitcoin to its treasury.
Czech Republic and Hong Kong: Evaluating the possibility of making Bitcoin a reserve asset.
Poland: Has ruled out adopting Bitcoin as a reserve asset.
Switzerland's stance on Bitcoin reflects a complex relationship between traditional finance and the emerging cryptocurrency ecosystem $BTC
