The Swiss National Bank (SNB) has officially rejected calls to add Bitcoin to its reserve assets, signaling caution from even the world’s most crypto-friendly countries.
At the SNB’s annual meeting, Vice President Martin Schlegel stated that Bitcoin does not match the “high requirements” for assets in the central bank’s portfolio, citing worries about stability, liquidity, and volatility.
Why Bitcoin Was on the Table
The proposal came from Bitcoin advocates like Yves Bennaim, who argued that a small Bitcoin allocation could diversify Swiss reserves and protect financial independence. Historic analysis revealed that even a 1% exposure since 2015 might have doubled the SNB’s returns, an attractive figure given Switzerland’s expanding cryptocurrency popularity.
Despite Switzerland’s progressive crypto environment, the SNB is cautious about direct exposure.
SNB’s Reasoning
Schlegel emphasised Bitcoin’s significant price volatility and poor liquidity during the crisis, which are incompatible with the SNB’s mandate for secure and reliable assets.
While acknowledging indirect Bitcoin exposure through investment in firms such as Tesla and MicroStrategy, Schlegel stated that the bank had no plans to own Bitcoin directly.
Bitcoin remains too speculative to be used as a reserve currency, according to the SNB.
A Global Pattern
The SNB’s stance aligns with other major central banks:
- The European Central Bank criticizes Bitcoin’s instability.
- The U.S. The Federal Reserve steers clear of crypto exposure.
- Central banks across Europe and Asia prefer traditional safe havens like gold and treasuries.
Despite Bitcoin’s popularity, the path to official reserve status remains full of obstacles.
