Swiss National Bank has rejected bitcoin reserves citing concerns over the liquidity and instability of the cryptocurrency market.
On Friday, SNB President Martin Shlegal said at the bank’s General Assembly meeting, “For cryptocurrency, the liquidity of the market, even though it may seem well, is especially said in question, especially during the crisis.”
“Cryptocurrency is also known for their high volatility, which is a risk for long -term value protection. In short, one may say that cryptocurrency for this time does not meet high requirements for our currency reserves.”
Schlegel was indicated by comments Bitcoin initiativeA bitcoin advocacy group whose research shows that adding bitcoin to a Treasury in Switzerland will complement its overall portfolio and will be sufficient return with minimal instability.
According to bitcoin initiative portfolio simulation, without bitcoin, Swiss National Bank’s investment increased by about 10% since 2015. The allocation of 1% bitcoin in the Central Bank’s portfolio will almost double. The annual instability must have only increased slightly.
Bitcoin initiative emphasized that the instability of bitcoin should not be evaluated in isolation, but in terms of the overall mobility of the investment portfolio and its impact on performance.
Louzius Miseer, a member of the bitcoin initiative and a member of Bitcoin Susse, said, “(bitcoin) has reached new heights, it shows flexibility under the stress of the market, and it is excessive liquid with trading volumes on billions of double digits, every day and night, even on bank holidays,”
“Bitcoin network is one of the most reliable and safe IT systems ever. And most notable, the United States has launched a strategic bitcoin stockpile.”
In an email statement for Coindesk, Bitcoin initiative suggested that Swiss National Bank’s mistrust for bitcoin could be political, as it “expression of mistrust towards other currencies” and can be damaged to delicate relations between Switzerland and European Union.
European Central Bank President Christine Lagarde has constantly criticized bitcoin, called “called”worth nothing“And a” highly speculative property “is associated with money laundering. In January, Lagard said “I trustECB’s “Bitcoin will not enter any central bank’s reserves”.
The check was in response to the comments made by National Bank Governor Els Mixel that his organization was evaluating adding Bitcoin to his store. Lagard argued that bitcoin fails to fulfill the ECB criteria for liquidity, safety and security from criminal associations.
in February, Central Bank of Poland “Under no circumstances refused to keep stores in bitcoin” Romanian central bank Banks warned crypto companies not to issue loans.
Federal Reserve Chairman Jerome Powell said in December 2024 that the US Central Bank was “not allowed bitcoin” as per the Federal Reserve Act and is not looking to change the law.
The Swiss National Bank has indirect bitcoin exposure through shares, which are corporate bitcoin tragedies, including 520,000 shares of strategy, 8.12 million shares of Tesla, 580,000 shares of Mara Holdings, and 500,000 shares of Clycespark, 2024 by the end of 2024. Fintel data,
Schlegel dismissed the civil call to connect bitcoin reserves to Swiss Central Bank’s Coffers, as recently like last month. When it comes to technological progress, Schlegel noted on Thursday The central bank is running a pilot project using digital currencies to facilitate payment between SNB financial institutions.
Conversely, US President Donald Trump signed an executive order this year, establishing a strategic bitcoin reserve and crypto stockpile with a Crypto Council, which will evaluate the budget neutral methods to complement American digital reserves. This order is out of the concerns of privacy for citizens to prevent government agencies from creating or promoting central bank digital currency in the United States.
