NewsletterSwiss National Bank Rejects Bitcoin Reserve Plans Despite US BTC Push
Highlights
- Swiss National Bank rejects the notion of a strategic Bitcoin reserve.
- The central bank chief Martin Schlegel cites market volatility and security concerns.
- This development comes amid the increasing adoption of Bitcoin across the world.
Despite the global push for a strategic Bitcoin Reserve, the Swiss National Bank has opted out of investing in Bitcoin and other cryptocurrencies. In a recent revelation, the central bank chief Martin Schlegel rejected the idea of Bitcoin reserve, citing market volatility and security threats.
Notably, Switzerland’s rejection of a crypto reserve comes amidst US President Donald Trump’s increasing support for the crypto establishment. Let’s unveil the Swiss National Bank’s unique stance on digital assets as global economies vie to establish a crypto reserve.
Swiss National Bank Rejects Bitcoin Reserve Plans
In a surprising development, the Swiss National Bank Chief Martin Schlegel turned down the notion of a Bitcoin reserve. He cited the cryptocurrency’s volatile nature, security concerns, and regulatory uncertainty as the key reasons for dismissing the proposal. Schlegel stated, “We do not have plans to buy crypto assets.”
Further, the Swiss National Bank chief posited that the central bank’s foreign-exchange reserves are solely dedicated to supporting monetary goals. He added that cryptocurrencies do not meet the necessary criteria to serve this purpose.
The central bank chief also raised concerns over the cryptocurrencies’ liquidity. Another issue that Schlegel pointed out was their “software-based” nature which makes them vulnerable to technological glitches and errors. He further added,
For example, it’s the preservation of value. And as you know, crypto currencies have large fluctuations in value, so this is not a given.
Will Switzerland Adopt a Strategic Bitcoin Reserve?
In December 2024, the Swiss Federal Chancellery launched a proposal to create a Bitcoin reserve after a failed attempt in October 2021. Triggered by Donald Trump’s Bitcoin reserve proposal, the Swiss Federal Chancellery’s proposal gained much attention.
Reportedly, the campaigners have already started collecting 100,000 signatures, paving the way for a nationwide referendum on embracing Bitcoin. A successful signature drive would obligate the Swiss National Bank to reevaluate its skeptcals stance on cryptocurrencies.
This comes following Pakistan’s renewed approach to cryptocurrencies. Pakistan Crypto Council CEO Bilal Bin Saqib revealed that the country it establishing a comprehensive legal framework for cryptocurrencies to foster growth and adoption.
Crypto Reserve To Become a Global Vision
Countries across the world are vying to embrace crypto reserves. Especially driven by Donald Trump’s crypto policies and his Bitcoin reserve plans, countries like Russia, Brazil, and Poland are analyzing the potential of a Bitcoin reserve.
Recently, North Korea has flipped Bhutan and El Salvador in Bitcoin accumulation, becoming the fourth-largest BTC holder. This has sparked speculations of North Korea embracing a Bitcoin reserve.
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