Swiss National Bank Rejects Bitcoin as a Reserve Asset
The Swiss National Bank dismisses Bitcoin as a reserve asset, citing stability, liquidity, and security concerns.
- Swiss National Bank President rejects Bitcoin as a reserve asset.
- Concerns include price stability, liquidity, and security risks.
- Switzerland maintains a cautious stance on crypto adoption.
Bitcoin Not Fit for Swiss National Reserves, Says SNB President
Switzerland’s central bank has taken a firm stance against adopting Bitcoin as a reserve asset. Swiss National Bank (SNB) President Martin Schlegel recently expressed concerns over Bitcoin’s volatility, liquidity issues, and security risks, making it unsuitable for the country’s financial reserves.
Concerns Over Bitcoin’s Stability and Liquidity
Schlegel emphasized that Bitcoin’s price fluctuations make it an unreliable store of value. Unlike traditional reserve assets such as gold or foreign currency, Bitcoin’s extreme volatility could expose Switzerland’s financial system to unnecessary risks.
Liquidity is another major issue. The SNB President pointed out that Bitcoin markets can be highly illiquid, especially during periods of financial stress. This could pose challenges in converting Bitcoin into fiat currency when needed, affecting Switzerland’s financial stability.
🇨🇭ICYMI: Swiss National Bank President Martin Schlegel opposed making Bitcoin a reserve asset in Switzerland, citing a lack of stability, liquidity concerns and security risks, according to a Swiss local media outlet Tamedia. pic.twitter.com/cqGjhEwaFq
— Cointelegraph (@Cointelegraph) March 3, 2025
Security Risks and Switzerland’s Cautious Approach
Apart from volatility and liquidity, security risks were also a key concern. Bitcoin’s decentralized nature makes it vulnerable to cyber threats, hacking incidents, and regulatory uncertainties. The SNB has historically maintained a cautious approach to cryptocurrency adoption, preferring to focus on traditional financial instruments.
Despite Switzerland’s reputation as a crypto-friendly nation, its central bank remains hesitant to integrate Bitcoin into its reserves. While the country continues to foster blockchain innovation, the SNB prioritizes financial stability over embracing digital assets as part of its monetary policy.
