Swiss National Bank Rejects Bitcoin Inclusion in Reserves

The Swiss National Bank (SNB), led by President Martin Schlegel, has firmly rejected calls to include Bitcoin in its currency reserves, citing its extreme price volatility, insufficient market liquidity during crises, and inability to meet the high standards required for reserve assets. Schlegel emphasized that national reserves must be highly liquid and stable to support the bank's monetary policy, qualities he believes Bitcoin currently lacks. Despite pressure from Bitcoin advocates and a citizen-driven initiative aiming to amend Switzerland's constitution to allow Bitcoin holdings, the SNB maintains a conservative strategy, prioritizing financial stability. Supporters argue that Bitcoin could serve as a valuable hedge in scenarios of declining trust in traditional government debt and that even a small allocation could have boosted SNB's returns. Nevertheless, Schlegel remains unconvinced, reiterating that cryptocurrencies remain a niche market, and their risks outweigh potential benefits for the central bank’s reserves.