BERN, April 24 (Reuters) – The proponents of cryptocurrency hold a common view that the Swiss National Bank (SNB) needs to buy Bitcoin to add to its national reserves. Supporters of the campaign believe that the ongoing disruptions in the economy, particularly due to the trade tariffs put in place by U.S. President Donald Trump, make it paramount for the central bank to diversify its assets. Last December, the supporters of Bitcoin initiated a campaign to change the Swiss constitution so that it mandates the SNB to keep Bitcoin in reserve together with gold.
Campaigners Bitcoin Case Presented For
Bitcoin Suisse’s board and leading Meisser advocate for Bitcoin and its inclusion into the currency reserves of the national bank (SNB). Meisser will be speaking at SNB’s annual general meeting, which is going to be held in Bern on Friday. Meisser argues that “Holding bitcoin makes more sense as the world shifts towards a multipolar order, where the dollar and the euro are weakening.” Also, he defended that acquiring Bitcoin could protect the SNB from the political forces impacting the worth of its foreign currency reserves, pointing out that three-quarters of these reserves are in currencies like the dollar and the euro. He maintained his point, stating that unlike fiat currencies, the supply of Bitcoin is free from politically motivated inflation, for instance, by deficit spending. He stated, “Politicians eventually give in to the temptation of printing money to fund their plans, but bitcoin is a currency that cannot be inflated through deficit spending.”
Skeptical STNB Maintains Stance SNB
Swiss campaigners’ pleas have fallen on deaf ears, as the Swiss National Bank still shows no intention of including Bitcoin in their reserves, claiming they do not possess any at the moment. The SNB cites concerns about significant price volatility, liquidity issues for a reserve of national scale, security risks, and other reasons as justification of their position.
SNB Chairman Martin Schlegel discussed some of these issues in his March remarks to the Swiss newspaper Tages-Anzeiger. Schlegel pointed out that “cryptocurrencies are fundamentally softwar”e, which raises issues of their dependability. “Cryptocurrencies are essentially software. And we all know that software can often have bugs and other vulnerabilities.” Those comments illustrate the Swiss central bank’s concerns about the dependability of digital assets against the backdrop of conventional reserve holdings.
Switzerland’s Crypto Landscape and Market Scope
Switzerland stands out globally as one of the nations at the forefront of blockchain and cryptocurrency development. It was also the home of early Ethereum projects in Zug, commonly referred to as “Crypto Valley.” Public perception is catching up to this domestic activity; a survey by Lucerne University of Applied Sciences and Arts revealed that 11% of the Swiss population has ventured into crypto investments. Supporters highlight the global BTC market’s liquidity and stability to justify the SNB’s concerns. Bitcoin Initiative organizer Yves Bennaim defended his position, saying that the backbone technology of Bitcoin is extremely robust and secure. “It is one of the most reliable and secure IT systems ever created and was constantly improving,” he recalls. Further confirming his statements, Bennaim added that the global Bitcoin market is valued at approximately $2 trillion, making it the most liquid and stable in the digital assets market, with billions traded daily.
Detailed Reserve Allocation Proposal
Both Meisser and Bennaim, who personally own Bitcoin, have maintained that their advocacy is not motivated by self-serving investment reasons. Bennaim suggested a particular allocation strategy for the SNB’s reserves, which are nearly 1 trillion francs. He argued against an all-in strategy but maintained that some percentage would be reasonable. As Bennaim puts it, “We are not saying, go all in with bitcoin, but if you have nearly 1 trillion francs in reserves like the SNB does, all it takes is 1–2% to be in an asset that is on the rise, is becoming more secure, and everyone wants to own.” In this case, probability is on the side of the asset and proposing even a slight amount for order brings an opportunity for diversification while increasing access to an asset that is likely on the rise.
The SNB has remained resolute in its position even with the ongoing campaign and the possible constitutional referendum looming on the horizon. ” The clash remains as traditional stable reserve asset advocates argue along with proponents of Bitcoin’s necessary, yet volatile, role in future economic uncertainty diversification and shift for national wealth.
