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Swiss National Bank (SNB) President Martin Schlegel reportedly doesn\u2019t want to make Bitcoin a reserve asset in Switzerland \u2014 citing a lack of stability, liquidity concerns and security risks.<\/p>\n
Schlegel\u2019s position opposes a proposal from Swiss Bitcoin nonprofit think tank 2B4CH and other Bitcoin advocates to constitutionally mandate SNB<\/a> to hold Bitcoin (BTC<\/a>) on its balance sheet.<\/p>\n Schlegel first told<\/a> Swiss local media outlet Tamedia that Bitcoin and other cryptocurrencies are too volatile, which isn\u2019t conducive to maintaining the value of SNB\u2019s investments.<\/p>\n \u201cSecond, our reserves need to be highly liquid so that they can be used quickly for monetary policy purposes if needed,\u201d Schlegel told Tamedia on March 1.<\/p>\n Source: <\/em>Bitcoin Initiative<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Schlegel also pointed out that because Bitcoin and cryptocurrencies are run by software, they are inherently susceptible to bugs and technical vulnerabilities:<\/p>\n \u201cWe all know that software can have bugs and other weak points.\u201d<\/p><\/blockquote>\n While Schlegel acknowledged the crypto market secures nearly $3 trillion worth of value, he said the industry remains a \u201cniche phenomenon\u201d compared to the broader financial system.<\/p>\n The Swiss central bank president added that he doesn\u2019t see Bitcoin or crypto potentially dethroning the Swiss franc either:<\/p>\n \u201cWe\u2019re not afraid of competition from cryptocurrencies.\u201d<\/p><\/blockquote>\n 2B4CH\u2019s proposal was set in motion by the Swiss Federal Chancellery on Dec. 31, where it will need to obtain 100,000 signatures to be put to a public referendum.\u00a0<\/p>\n They have until June 30, 2026, to obtain the 100,000 signatures \u2014 around 16 months from now.<\/p>\n Switzerland boasts a population of 8.97 million, meaning about 1.11% of locals must sign the petition.<\/p>\n Related: <\/strong><\/em>Trump to host first White House crypto summit on March 7<\/strong><\/em><\/a><\/p>\n Despite Schlegel\u2019s criticisms, Switzerland is one of the leading countries for Bitcoin adoptio<\/a>n \u2014 particularly in the city of Lugano,<\/a> where the annual \u201cPlan \u20bf\u201d conference is held.<\/p>\n A Bitcoin reserve is currently being considered in the US, Czech Republic<\/a> and Hong Kong,<\/a> while El Salvador<\/a> continues to stack at least one Bitcoin to its treasury, which launched in September 2021.<\/p>\n Poland<\/a> recently ruled out the possibility of making Bitcoin a reserve asset.<\/p>\n