- A new proposal has been initiated in Switzerland to mandate the Swiss National Bank (SNB) to include Bitcoin in its reserves
- The proposal suggests amending the law to require the SNB to hold reserves in both gold and bitcoin
- The initiative has 18 months to gather 100,000 signatures to trigger a public referendum
The Swiss National Bank (SNB) may be compelled to discuss the allocation of part of its reserves to Bitcoin and gold following a publication by the Swiss federal chancellery. The proposal aims to amend existing laws, reflecting the growing interest in cryptocurrency, and the initiative’s backers have a year and a half to collect enough public support to put the matter to a referendum. The SNB, however, remains cautious about Bitcoin’s practicality and risks, meaning that the proposal faces an uphill battle.
Crypto Advocates Tabled Proposal
The proposal was launched by a group of cryptocurrency advocates and was unveiled by the Swiss federal chancellery on December 31, calling for changes to current regulations, mandating the central bank to hold reserves in both gold and Bitcoin. The move was hailed by Dennis Porter, the co-founder and CEO of the Satohi Action Fund:
I’m very excited about what is happening in Switzerland. I was able to speak in Switzerland in 2024 on a panel alongside @samuelkullmann who is a Swiss lawmaker doing incredible things to advance Bitcoin in the country.
He informed me that he was pursuing an effort to add… pic.twitter.com/NZF7SEM3ZC
— Dennis Porter (@Dennis_Porter_) January 1, 2025
Proponents now face the challenge of collecting 100,000 signatures within 18 months to advance the proposal to a national referendum, something that will act as a bellwether of Bitcoin’s popularity in the country.
SNB Bosses Aren’t in Favor
While the move underscores Switzerland’s progressive stance on digital assets, SNB officials remain skeptical about cryptocurrencies. Speaking at a recent event in Brugg, SNB Vice Chairman Martin Schlegel expressed concerns about the volatility and energy demands of cryptocurrencies, stating, “Bitcoin and other virtual currencies have grown enormously in recent years, but despite this growth, these currencies remain a niche phenomenon.”
Schlegel highlighted issues like price fluctuations, limited practical use for payments, and associations with illegal activities as reasons for caution. “These strong value fluctuations mean they are not practical for payments,” he said, adding that cryptocurrencies also require significant energy and face challenges in regulation.
Despite these reservations, Schlegel emphasized that the SNB is not ignoring technological advancements. He noted the bank’s ongoing pilot project for central bank digital currency (CBDC), which aims to streamline financial transactions among institutions. Furthermore, in August, the SNB introduced instant payment systems, allowing near-instant transfers between accounts.
Schlegel reaffirmed the importance of physical cash in Switzerland’s payment ecosystem, underscoring its simplicity and anonymity. “Despite the digitalization of the electronic payment system, we believe that cash will play an important role in the future,” he remarked. The SNB is also preparing to release a new series of banknotes, reflecting its commitment to preserving cash as a key component of the economy.
