Why the Swiss National Bank Rejects Bitcoin as a Reserve Asset

A Strategic Debate on Switzerland’s Monetary Future

Switzerland has long been recognized as a global financial hub, renowned for its stability, strong currency, and prudent monetary policies. At the heart of this stability is the Swiss National Bank (SNB), which manages the country’s monetary reserves to ensure economic security and financial resilience. However, in an era where cryptocurrencies like Bitcoin are gaining increasing attention as potential alternative assets, the SNB remains steadfast in its opposition to adopting Bitcoin as part of its reserves.

Recently, Martin Schlegel, President of the SNB, reaffirmed his stance, citing fundamental economic and security concerns. Despite the launch of a popular initiative advocating for the inclusion of Bitcoin in Switzerland’s national reserves, the SNB maintains that cryptocurrencies do not meet the criteria of a reliable reserve asset.

In this article, we will explore why the SNB opposes Bitcoin, analyze the ongoing public debate, and assess the broader implications for Switzerland’s financial future.

1. Why the Swiss National Bank Rejects Bitcoin

1.1. Extreme Volatility: A Risk to Reserve Stability

Bitcoin’s most notable characteristic is its high volatility. Unlike traditional reserve assets such as gold or major fiat currencies, Bitcoin’s price can fluctuate wildly within short periods, making it unsuitable for a central bank that prioritizes stability and predictability.

📉 Example: In autumn 2024, Bitcoin surged to an all-time high of $100,000, only to drop below $80,000 by February 2025. Such price swings make it an unreliable store of value.

For a central bank, stability is crucial. Foreign currency reserves and gold are carefully selected for their ability to retain value over time, particularly during financial crises. Bitcoin’s speculative nature makes it unsuitable as a hedge against economic uncertainty.

1.2. Limited Liquidity for Immediate Interventions

A key requirement for central bank reserves is high liquidity—the ability to convert assets into cash quickly when needed.

✅ Traditional reserve assets (such as the US dollar, euro, or Swiss franc) are backed by deep and highly liquid markets, allowing instant transactions.
✅ Gold, though less liquid than cash, remains a universally accepted asset with a well-established market.

🔴 Bitcoin, in contrast, lacks the same depth of liquidity. Despite growing adoption, it is still prone to low-volume periods and market fragmentation, which could delay or complicate transactions in times of financial distress.

SNB officials stress that, in a crisis, the central bank must be able to mobilize its reserves quickly and efficiently, something that Bitcoin cannot guarantee.

1.3. Security Risks and Technological Vulnerabilities

Cryptocurrencies rely entirely on digital infrastructure, exposing them to cybersecurity threats, regulatory changes, and technical vulnerabilities.

⚠️ Security Risks: Major cryptocurrency exchanges have been hacked, leading to multi-billion-dollar losses.
⚠️ Regulatory Uncertainty: Governments worldwide continue to impose new restrictions on crypto assets, potentially impacting their accessibility.
⚠️ Smart Contract and Blockchain Risks: Bitcoin, while decentralized, remains vulnerable to software bugs, network attacks, and evolving security threats.

For a national reserve, these risks are unacceptable. Traditional assets, such as fiat currencies and gold, do not face such technological threats, making them far more reliable in the eyes of central bankers.

2. A Popular Initiative: Bitcoin as a Swiss Reserve Asset?

2.1. A Citizen-Led Proposal to Add Bitcoin to the SNB’s Portfolio

In December 2024, Swiss activists launched a popular initiative aimed at forcing the SNB to invest a portion of its reserves in Bitcoin—similar to its gold holdings.

📌 For this initiative to proceed to a national referendum, it must collect 100,000 valid signatures within 18 months. If successful, Swiss citizens could vote on the matter as early as mid-2026.

Supporters of the initiative argue that Bitcoin offers several advantages:
✔ Diversification: Bitcoin could serve as an alternative asset to hedge against inflation.
✔ Growing Institutional Adoption: Major financial firms and sovereign entities have started to integrate Bitcoin into their portfolios.
✔ Switzerland as a Crypto Leader: Given Switzerland’s blockchain-friendly ecosystem, embracing Bitcoin could further cement its role as a global financial innovator.

2.2. The SNB’s Firm Opposition to Bitcoin Reserves

Despite public enthusiasm, the SNB remains firmly against adding Bitcoin to its reserves. Schlegel argues that cryptocurrencies remain a niche financial instrument and do not pose a real challenge to the Swiss franc’s global reputation.

🔹 The Swiss franc is one of the world’s strongest and most stable currencies, trusted in times of economic uncertainty.
🔹 Cryptocurrencies, by contrast, remain a relatively small asset class, with limited mainstream adoption compared to traditional reserves.

The SNB’s stance aligns with most major central banks, including the European Central Bank (ECB) and the Federal Reserve, both of which have warned about Bitcoin’s volatility and lack of intrinsic value.

3. What Does the Future Hold for Bitcoin in Switzerland?

3.1. Growing Private-Sector Crypto Adoption

While the SNB rejects Bitcoin as a reserve asset, Switzerland remains a pioneer in blockchain innovation and cryptocurrency adoption.

✅ Zug’s “Crypto Valley” is home to some of the world’s leading blockchain companies.
✅ Swiss private banks now offer Bitcoin investment and custody services for high-net-worth clients.
✅ Retail adoption is growing, with some Swiss businesses accepting Bitcoin as payment.

3.2. How Switzerland Compares to Other Nations

While Switzerland is taking a cautious regulatory approach, other countries are experimenting with Bitcoin at different levels:

🌍 El Salvador became the first nation to adopt Bitcoin as legal tender, integrating it into its financial system.
🌍 China, on the other hand, has completely banned Bitcoin mining and trading to maintain control over its digital currency ecosystem.
🌍 The European Union and the U.S. remain skeptical about using Bitcoin for monetary policy purposes, instead focusing on developing central bank digital currencies (CBDCs).

Switzerland’s approach reflects global financial conservatism—while the private sector embraces blockchain, the central bank remains focused on preserving economic stability.

Bitcoin and the SNB’s Conservative Approach

The Swiss National Bank’s rejection of Bitcoin as a reserve asset is based on clear economic, security, and liquidity concerns.

➡ While Bitcoin enthusiasts argue for greater financial innovation, the SNB sees Bitcoin’s extreme volatility, security risks, and lack of liquidity as deal-breakers.
➡ The popular initiative advocating Bitcoin adoption could stir further debate, but the SNB’s position is unlikely to change soon.
➡ Switzerland remains a global crypto hub, but its central bank prioritizes monetary stability over speculative investments.

🚀 Will Bitcoin ever gain central bank recognition? For now, the Swiss franc remains one of the world’s most trusted financial assets, leaving Bitcoin as an innovation for the private sector rather than a tool for national reserves.