The Swiss National Bank (SNB) has rejected the idea of holding Bitcoin as part of its reserves due to concerns over stability, liquidity, and security.
President of SNB, Martin Schlegel emphasized these issues in an interview with the Tamedia group, highlighting that crypto like Bitcoin are too volatile for long-term value preservation and lack the liquidity needed for quick monetary policy interventions.
Furthermore, Schlegel noted that software-based assets, such as crypto, are inherently insecure due to potential bugs and vulnerabilities.
This decision comes amid a Swiss citizens' initiative launched in December, which seeks a constitutional amendment requiring the SNB to hold Bitcoin alongside gold in its reserves.
The initiative, led by entrepreneur Yves Bennaim, aims to gather 100,000 signatures within 18 months to prompt a nationwide vote.
In spite of growing acceptance of crypto in Switzerland, with several banks offering related services, Schlegel views them as a "niche phenomenon" and is not concerned about competition from crypto, citing the strength of the Swiss franc.
Despite the bank's rejection, grassroots initiatives in Switzerland continue to push for Bitcoin's inclusion in national reserves. This ongoing debate could keep crypto in the spotlight and potentially influence future policy decisions.
What are your thoughts?
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They Need a bit more time I guess. And some even higher prices. Fomo has not kicked in yet. 😂
Let them take the time :)
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Interesting to see the Swiss National Bank's stance on Bitcoin as a reserve asset.