Swiss National Bank Dismisses Proposals to Include Bitcoin in Reserves

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The Swiss National Bank has rejected holding bitcoin reserves, citing concerns over cryptocurrency market liquidity and volatility. “For cryptocurrencies, market liquidity, even if it may seem ok at times, is especially called into question during crises,” said SNB President Martin Schlegel at the bank’s General Assembly meeting Friday. “Cryptocurrencies also are known for their high volatility, which is a risk for long-term value preservation. In short, one can say that cryptocurrencies for the moment do not fulfill the high requirements for our currency reserves.”

Schlegel’s comments were prompted by a bitcoin advocacy group whose research indicates that adding bitcoin to Switzerland’s treasury could complement its overall portfolio and yield substantial returns with minimal volatility. Without bitcoin, the Swiss National Bank’s investments have grown by about 10% since 2015. A 1% bitcoin allocation to the central bank’s portfolio would have nearly doubled returns over the same period, according to a portfolio simulation. Annualized volatility would have increased only slightly.

The advocacy group emphasized that bitcoin’s volatility should be considered in terms of its influence on overall portfolio dynamics and performance. “[Bitcoin] price reached new highs, demonstrated resilience under market stress, and continues to be highly liquid with trading volumes in the double-digit billions daily, even on bank holidays,” said Luzius Meisser, a member of the advocacy group and board member of Bitcoin Suisse. “The Bitcoin network remains one of the most reliable and secure IT systems ever created.”

In an emailed statement, the group suggested that the Swiss National Bank’s reluctance towards bitcoin might be politically motivated, as it could express distrust towards other currencies and impact delicate relations between Switzerland and the European Union. European Central Bank President Christine Lagarde has consistently criticized bitcoin, labeling it “worth nothing” and a “highly speculative asset” connected to money laundering. In January, Lagarde expressed confidence that “bitcoins will not enter the reserves of any of the central banks of the General Council” of the ECB, responding to comments from Czech National Bank Governor Ales Michl regarding the evaluation of bitcoin for reserves.

In February, Poland’s central bank ruled out “keeping reserves in bitcoins under any circumstances,” while the Romanian central bank advised against issuing loans to crypto companies. Federal Reserve chair Jerome Powell stated in December 2024 that the U.S. central bank was “not allowed to own bitcoin” according to the Federal Reserve Act and that there are no plans to change this law.

The Swiss National Bank does have indirect exposure to bitcoin through its investments in stocks that own corporate bitcoin treasuries, including 520,000 shares of Strategy, 8.12 million shares of Tesla, 580,000 shares of MARA Holdings, and 500,000 shares of CleanSpark, as of the end of 2024 according to Fintel data. Schlegel dismissed citizen calls to add bitcoin reserves to the Swiss central bank’s funds as recently as last month. Regarding technological advancements, Schlegel noted that the SNB is running a pilot project using central bank digital currencies to facilitate payments between financial institutions.

In contrast, U.S. President Donald Trump signed an executive order this year establishing a strategic bitcoin reserve and a crypto stockpile, accompanied by a Crypto Council tasked with evaluating budget-neutral methods to supplement U.S. digital reserves. The order additionally prohibits government agencies from creating or promoting a central bank digital currency in the United States due to privacy concerns for citizens.

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