The push for the Swiss National Bank (SNB) to diversify its foreign reserves by acquiring Bitcoin (BTC) has gained momentum in Switzerland. A coalition of crypto advocates launched a campaign in December, calling for the SNB to hold Bitcoin alongside gold as part of its foreign asset portfolio. The campaign aims to address concerns about overreliance on traditional currencies and political exposure.
Proponents argue that Switzerland should adjust its reserve strategy to reflect a global transition toward multipolarity and reduced dependence on the US dollar and euro. Luzius Meisser, a board member of Bitcoin Suisse, emphasized that Bitcoin’s inflation-resistant nature makes it a compelling alternative to fiat currencies. Meisser will present the initiative’s rationale at the SNB’s annual general meeting in Bern this week.
The referendum process requires 100,000 verified signatures to proceed to a national vote. If successful, it would be the first initiative globally to mandate Bitcoin holdings by a central bank through constitutional reform. This move comes at a time when sovereign wealth funds are accumulating Bitcoin, signaling a growing interest in digital assets among financial institutions.
Supporters of the referendum suggest that allocating a small portion of the SNB’s nearly $1 trillion Swiss franc reserve portfolio into Bitcoin could protect against monetary debasement without exposing the bank to excessive volatility. They argue that the current foreign currency holdings of the SNB, primarily in US dollars and euros, pose risks of devaluation and exposure to foreign political dynamics.
Switzerland’s positioning as a hub for blockchain technology further supports the argument for diversifying into Bitcoin. The country is home to “Crypto Valley” in Zug, a zone dedicated to crypto industries, and ranks favorably in global crypto indices. Proponents of the initiative highlight Bitcoin’s security and liquidity, emphasizing its $2 trillion market capitalization and robust trading volumes.
Despite the campaign’s momentum, the SNB remains cautious towards crypto. Chairman Martin Schlegel has expressed reservations about Bitcoin’s high volatility, limited liquidity in crisis scenarios, and technical vulnerabilities. He believes that cryptocurrencies, being essentially software, carry inherent risks that currently prevent their inclusion in official reserves.
While the campaign faces skepticism from the SNB, the push for Bitcoin adoption in Switzerland reflects a broader trend towards digital asset diversification in traditional financial institutions. The outcome of the referendum initiative could have significant implications for the future of central bank reserves and the broader adoption of Bitcoin in the financial sector.