Amid trade war concerns, advocates push for the Swiss National Bank to hold Bitcoin in reserves. The campaign aims to diversify amidst weakening traditional currencies, though the SNB remains cautious about crypto volatility and security risks. Switzerland is exploring digital assets through legislative initiatives and pilot projects related to central bank digital currencies.
Amid the ongoing trade tensions associated with U.S. tariffs, advocates of a unique referendum are pushing for the Swiss National Bank (SNB) to include Bitcoin in its reserves. Supporters of this Bitcoin Initiative argue that the current economic instability presents a strong case for the SNB to diversify its asset portfolio. Luzius Meisser, a board member at Bitcoin Suisse and a referendum backer, noted that as global power dynamics shift, holding Bitcoin could be a strategic move given the weakening of traditional currencies like the dollar and euro.
This campaign, which kicked off in December, strives to amend the Swiss constitution in order to mandate Bitcoin reserves. Currently, the SNB does not hold any Bitcoin at all, with around 75% of its foreign currency reserves tied up in dollars and euros. Proponents suggest that including Bitcoin could insulate the bank against political pressures affecting its foreign currency values, curbing the tendency for politicians to print money for their agendas while simultaneously securing a potentially appreciating asset.
Yet, the SNB remains cautious about Bitcoin. Concerns revolve around the cryptocurrency’s notorious volatility, its liquidity difficulties, and overall security risks. Martin Schlegel, the bank’s chairman, recently conveyed this apprehension in a local newspaper, expressing that cryptocurrencies fundamentally operate as software, and like any software, they are prone to bugs and vulnerabilities.
On a related note, Switzerland is already exploring digital asset initiatives, as evidenced by its implementation of the Swiss Distributed Ledger Technology (DLT) Act. This legislation has paved the way for tokenised securities and digital asset trading, reflecting a broader trend. Additionally, in July, SNB governing board member Antoine Martin mentioned the bank’s interest in expanding its digital currency project, encouraging more banks to get involved.
Interestingly, earlier developments indicated that the SNB was already piloting a wholesale central bank digital currency (CBDC), which had successfully completed transactions for four tokenised bond issuances along with one secondary market deal, showcasing the bank’s incremental approach to embracing digital currencies.
