Swiss National Bank (SNB) President, Martin Schlegel, rejected Bitcoin as a nation’s currency, claiming that the asset is too volatile. Schlegel, president of SNB since October 2024, prefers assets like gold or bonds because they can bring stability to a volatile market. Bitcoin, conversely, can be highly volatile in a short period, adding volatility to markets. For this reason, Schlegel rejects Bitcoin, as an asset for the central bank, because he prefers assets that stabilise markets.

Schlegel points out that a national bank does not necessarily have to offer cryptocurrencies. This is not to say that cryptocurrency should be restricted from other banks, but rather, it may not be appropriate for a central bank. He points out, further, that crypto still only has a small market share compared to other assets. For this reason, Schlegel describes Bitcoin as a “niche phenomenon”.

According to Schlegel, cryptocurrencies do not meet the standards expected of traditional currencies.

Schlegel argues that Bitcoin is free from regulatory structures traditionally used with currencies. A central bank manages a currency with regulatory structures. Therefore, Schlegel concludes that a central bank cannot manage Bitcoin because its decentralized design makes it difficult for a central bank to manage it.

Schlegel mentioned two factors that convinced him that crypto was inappropriate for a central bank: 1) extreme volatility and 2) lack of liquidity. A central bank needs to access funds quickly in a crisis, and Bitcoin is still difficult to convert to fiat money.

In December 2024, a committee urged the central bank to adopt Bitcoin. They wrote a document titled “For a financially strong, sovereign, and responsible Switzerland.” The committee then started a petition, collecting signatures throughout Switzerland. It took 18 months to collect over 100,000 signatures, to require the central bank to adopt Bitcoin.

Schlegel responds that Bitcoin is impossible for a central bank, repeating concerns about volatility and lack of liquidity. He adds that it would be nearly impossible to liquidate Bitcoin reserves in large quantities in a crisis.

Meanwhile, the initiative “For a financially strong, sovereign, and responsible Switzerland” continues to push for a reserve Bitcoin. It plans to amend Article 99, Paragraph 3 of the Swiss constitution to mandate the central bank to allocate Bitcoin reserves. Currently, the Swiss central bank has a mandate to hold gold reserves.

The group published their demands in the Federal Bundesblatt, which allows them to collect 100,000 signatures until June 30, 2026.

Swiss National Bank (SNB) President, Martin Schlegel, rejected Bitcoin as a nation’s currency, claiming that the asset is too volatile. Schlegel, president of SNB since October 2024, prefers assets like gold or bonds because they can bring stability to a volatile market. Bitcoin, conversely, can be highly volatile in a short period, adding volatility to markets. For this reason, Schlegel rejects Bitcoin, as an asset for the central bank, because he prefers assets that stabilise markets.

Schlegel points out that a national bank does not necessarily have to offer cryptocurrencies. This is not to say that cryptocurrency should be restricted from other banks, but rather, it may not be appropriate for a central bank. He points out, further, that crypto still only has a small market share compared to other assets. For this reason, Schlegel describes Bitcoin as a “niche phenomenon”.

According to Schlegel, cryptocurrencies do not meet the standards expected of traditional currencies.

Schlegel argues that Bitcoin is free from regulatory structures traditionally used with currencies. A central bank manages a currency with regulatory structures. Therefore, Schlegel concludes that a central bank cannot manage Bitcoin because its decentralized design makes it difficult for a central bank to manage it.

Schlegel mentioned two factors that convinced him that crypto was inappropriate for a central bank: 1) extreme volatility and 2) lack of liquidity. A central bank needs to access funds quickly in a crisis, and Bitcoin is still difficult to convert to fiat money.

In December 2024, a committee urged the central bank to adopt Bitcoin. They wrote a document titled “For a financially strong, sovereign, and responsible Switzerland.” The committee then started a petition, collecting signatures throughout Switzerland. It took 18 months to collect over 100,000 signatures, to require the central bank to adopt Bitcoin.

Schlegel responds that Bitcoin is impossible for a central bank, repeating concerns about volatility and lack of liquidity. He adds that it would be nearly impossible to liquidate Bitcoin reserves in large quantities in a crisis.

Meanwhile, the initiative “For a financially strong, sovereign, and responsible Switzerland” continues to push for a reserve Bitcoin. It plans to amend Article 99, Paragraph 3 of the Swiss constitution to mandate the central bank to allocate Bitcoin reserves. Currently, the Swiss central bank has a mandate to hold gold reserves.

The group published their demands in the Federal Bundesblatt, which allows them to collect 100,000 signatures until June 30, 2026.