Swiss National Bank Reaffirms Stance Against Bitcoin in Foreign Reserves

The Swiss National Bank (SNB) remains firm in its decision to exclude Bitcoin and other digital assets from its foreign exchange reserves, according to Governor Martin Schlegel.

Speaking to Bloomberg, Schlegel cited Bitcoin’s extreme volatility, instability, and regulatory challenges as key reasons for the SNB’s stance, emphasizing that such assets do not align with the bank’s monetary policy objectives.

Schlegel’s recent remarks reinforce the SNB’s long-standing skepticism toward cryptocurrencies. In a November 2024 event, he previously expressed concerns about the viability of Bitcoin and Ethereum, describing them as niche assets unsuitable for mainstream payment systems due to their significant price fluctuations.

Beyond volatility, Schlegel also pointed to the high energy consumption associated with cryptocurrency mining and the regulatory difficulties posed by their use in illicit activities. These factors, he argued, further undermine their potential as reliable reserve assets for a central bank.

READ ALSO: Ukraine Strikes Russian Strategic Bomber Base in Major Drone Attack

Despite the SNB’s reluctance to embrace digital currencies, Switzerland remains at the forefront of blockchain innovation. The country has fostered a progressive approach to fintech and continues to be a key player in the global digital asset ecosystem.

One of the latest advancements comes from BX Digital, the Swiss subsidiary of the Stuttgart Stock Exchange. Recently, BX Digital secured regulatory approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate a blockchain-based trading platform.

This groundbreaking system leverages Ethereum-based blockchain technology to facilitate direct asset transfers and settlements, eliminating intermediaries and significantly reducing transaction times and costs.

The SNB’s resistance to Bitcoin as a reserve asset contrasts with Switzerland’s broader embrace of blockchain technology. While the central bank prioritizes financial stability and regulatory clarity, the country’s private sector continues to push the boundaries of digital finance.