Swiss National Bank Rejects Bitcoin as Reserve Asset

• SNB President Martin Schlegel rejects Bitcoin as a reserve asset.
• He highlights its volatility and security concerns.
• Swiss central bank remains skeptical about cryptocurrencies.

The President of the Swiss National Bank (SNB), Martin Schlegel, has firmly dismissed the idea of holding Bitcoin as part of the country’s reserve assets. He emphasized that cryptocurrencies, including Bitcoin, do not possess the essential qualities of a reliable currency. According to Schlegel, Bitcoin’s extreme volatility and security vulnerabilities make it unsuitable for central bank reserves.

Concerns Over Volatility and Security

Schlegel pointed out that a good currency must maintain stability and security, characteristics that Bitcoin lacks. Over the years, Bitcoin has been notorious for its dramatic price swings, making it an unpredictable store of value. Additionally, concerns over cybersecurity threats and hacking incidents have raised red flags for regulatory authorities and financial institutions worldwide.

Swiss National Bank President Martin Schlegel rejects the idea that the central bank should hold part of its reserves in bitcoin. He said that cryptocurrencies do not fulfill the essential characteristics that a good currency should have, cryptocurrencies are extremely volatile…

— Wu Blockchain (@WuBlockchain) March 1, 2025

Switzerland’s Cautious Approach to Crypto

Despite Switzerland’s reputation as a crypto-friendly nation, its central bank has remained cautious regarding digital assets. The SNB has repeatedly expressed skepticism about the practicality of adopting cryptocurrencies as part of its monetary strategy. While some countries explore Bitcoin as a reserve asset, Switzerland’s central bank remains firm in its traditional approach.