Swiss Central Bank Chief Deems Bitcoin Too Risky for Reserves

Bitcoin is unsuitable for inclusion in state reserves due to cryptocurrencies’ lack of stability, liquidity, and security, according to Martin Schlegel, head of the Swiss National Bank (SNB), as reported by Swissinfo.

Schlegel explained that high volatility renders digital assets unreliable for long-term value preservation.

He stated that reserves must be immediately accessible for the implementation of monetary policy.

The SNB chief also pointed to vulnerabilities associated with the software foundation of cryptocurrencies, highlighting the potential for coding errors.

The statement comes amid an initiative seeking a constitutional amendment to mandate the Swiss central bank to hold reserves in bitcoin alongside gold.

The initiative was launched by entrepreneur Yves Bennaim, who began collecting signatures in December 2024. To bring the issue to a national vote, 100,000 signatures must be gathered within 18 months.

Despite growing interest in cryptocurrencies in Switzerland and their expanding use in the banking sector, Schlegel described bitcoin as a “niche phenomenon.” He noted that the Swiss franc remains a reliable currency and is not threatened by competition from digital assets.

In February, the Swiss bank PostFinance launched a service for cryptocurrency trading.