Swiss National Bank Declines to Add Bitcoin to Its Foreign Currency Reserves
The Swiss National Bank (SNB) has officially declined the inclusion of Bitcoin and other cryptocurrencies in its foreign currency reserves. Chairman Martin Schlegel stated that digital assets do not currently meet the institution’s strict standards for reserve management, emphasizing concerns around market liquidity and stability.
During a recent address, Schlegel highlighted that cryptocurrencies, particularly Bitcoin, are incompatible with the SNB’s cryptocurrency reserve strategy. He stressed that for the Swiss National Bank, the ability to freely buy and sell reserve assets is essential — an area where digital currencies present significant challenges due to their limited liquidity and high volatility.
Schlegel further described Bitcoin’s price movements as “very, very high,” pointing out that such volatility poses a serious threat to the central bank’s ability to preserve the value of its reserves. For the SNB, foreign currency reserves management demands assets that ensure both long-term stability and reliable market access — criteria cryptocurrencies currently fail to meet.
Bitcoin Initiative’s Proposal Rejected
The SNB’s firm stance came in response to a proposal from Luzius Meisser, co-founder of the Bitcoin Initiative, who advocated for Bitcoin to be included as a strategic reserve asset. Meisser argued that Bitcoin could serve as a safeguard against currency crises and provide an alternative to traditional sovereign bonds.
Despite these arguments, Schlegel reaffirmed that the central bank’s digital asset strategy remains cautious. He noted that the inherent Bitcoin volatility concerns make cryptocurrencies unsuitable for a stable reserve portfolio.
Focus on Stability and Risk Management
In managing its foreign currency reserves, the SNB prioritizes minimizing risks and maintaining high levels of liquidity. Schlegel emphasized that cryptocurrencies, with their unpredictable price swings and regulatory uncertainties, introduce risks that are incompatible with the bank’s strategic goals.
By rejecting Bitcoin, the Swiss National Bank has underscored its commitment to a conservative and risk-averse reserve management approach. As central banks worldwide explore digital assets, the SNB’s Bitcoin policy remains firmly anchored in preserving value and stability rather than embracing high-risk alternatives.
