Swiss Nationwide Bank (SNB) President Martin Schlegel reportedly doesn’t wish to make Bitcoin a reserve asset in Switzerland — citing a lack of stability, liquidity issues and safety dangers.
Schlegel’s place opposes a proposal from Swiss Bitcoin nonprofit suppose tank 2B4CH and different Bitcoin advocates to constitutionally mandate SNB to carry Bitcoin (BTC) on its stability sheet.
Schlegel first told Swiss native media outlet Tamedia that Bitcoin and different cryptocurrencies are too risky, which isn’t conducive to sustaining the worth of SNB’s investments.
“Second, our reserves should be extremely liquid in order that they can be utilized shortly for financial coverage functions if wanted,” Schlegel instructed Tamedia on March 1.
Supply: Bitcoin Initiative
Schlegel additionally identified that as a result of Bitcoin and cryptocurrencies are run by software program, they’re inherently inclined to bugs and technical vulnerabilities:
“Everyone knows that software program can have bugs and different weak factors.”
Whereas Schlegel acknowledged the crypto market secures almost $3 trillion value of worth, he stated the business stays a “area of interest phenomenon” in comparison with the broader monetary system.
The Swiss central bank president added that he doesn’t see Bitcoin or crypto doubtlessly dethroning the Swiss franc both:
“We’re not afraid of competitors from cryptocurrencies.”
2B4CH’s proposal was set in movement by the Swiss Federal Chancellery on Dec. 31, the place it might want to receive 100,000 signatures to be put to a public referendum.
They’ve till June 30, 2026, to acquire the 100,000 signatures — round 16 months from now.
Switzerland boasts a inhabitants of 8.97 million, that means about 1.11% of locals should signal the petition.
Associated: Trump to host first White House crypto summit on March 7
Regardless of Schlegel’s criticisms, Switzerland is among the leading countries for Bitcoin adoption — notably within the city of Lugano, the place the annual “Plan ₿” convention is held.
A Bitcoin reserve is at present being thought-about within the US, Czech Republic and Hong Kong, whereas El Salvador continues to stack a minimum of one Bitcoin to its treasury, which launched in September 2021.
Poland not too long ago dominated out the potential of making Bitcoin a reserve asset.
Journal: Elon Musk’s plan to run government on blockchain faces uphill battle
