Swiss National Bank Gives Bitcoin The Cold Shoulder – Too Volatile to Trust?

Let’s discover why the Swiss National Bank rejects the call for Bitcoin as a National reserve asset
The Swiss National Bank (SNB) has positioned itself against adding cryptocurrency to standard financial systems. The Bank has officially stated that Bitcoin will not become part of its reserve assets, and financial industry parties continue debating this decision. 

What Is The Barrier To Bitcoin’s Reserve Inclusion?

Bitcoin volatility is the main issue preventing the SNB from including cryptocurrency in its reserves. According to the Swiss National Bank, the price volatility experienced by Bitcoin and other cryptocurrencies makes them too unpredictable to be considered appropriate reserve assets. Martin Schlegel, SNB President, has stated that Bitcoin volatility creates major investment dangers that invalidate its suitability for the bank’s risk-averse investment plans. 

Bitcoin experienced a quick surge in value, which resulted in major price declines throughout its historical record. Bitcoin reached exceptional price heights during late 2021 but experienced tremendous downward movement in the following months. Excessive price volatility compromises any store-of-value qualities regarding reserve assets. The SNB maintains monetary and financial stability under its directive, which supports the bank’s reluctance to integrate unstable digital assets into its reserves.​

Liquidity and Security Concerns

Security and liquidity problems follow the volatility concerns that the SNB has identified in Bitcoin. The growth of cryptocurrency has not produced a market that matches traditional markets in terms of stability and depth. Bitcoin’s low liquidity creates difficulties for the SNB in exchanging substantial reserves quickly without causing significant price changes. Widespread usage of Bitcoin in central banking operations requires efficient reserve mobilization, which its current market infrastructure does not currently provide. ​

<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>🚨 Swiss National Bank President Martin Schlegel rejects Bitcoin as a reserve asset, citing its volatility, liquidity challenges, and security concerns. <a href=”https://t.co/P8QgLqIwbE”>pic.twitter.com/P8QgLqIwbE</a></p>&mdash; Crypto Jessica (@CryptoJessXBT) <a href=”https://twitter.com/CryptoJessXBT/status/1896429822940950779?ref_src=twsrc%5Etfw”>March 3, 2025</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

Security is another pressing concern. Bitcoin operates without central oversight, and it faces various cyber attacks that compromise its security platform. The cryptocurrency space faces serious security challenges due to well-known incidents of hacking and fraud, which make Bitcoin users feel their large investments are unsafe. Any potential asset weakness in national reserves requires a strict evaluation from the SNB before official consideration.​

The Push For Bitcoin Reserve

The growing body of advocates supports adding Bitcoin to national reserve systems despite the Swiss National Bank holding doubts about the measure. Bitcoin serves as digital gold, offering diversified protective advantages while protecting against risks found in traditional financial systems. The Swiss nonprofit organization presents a constitutional proposal that requires the SNB to acquire Bitcoin because many Swiss citizens endorse cryptocurrency adoption. 

The proposed plan follows a global direction because multiple countries and institutions actively investigate or implement cryptocurrency adoption plans within their monetary systems. Countries’ early adoption of these technologies would benefit them in the upcoming digital economy framework. Central banks maintain caution when adopting new innovations while ensuring stability in the financial system. 

Navigating the Cryptocurrency Frontier

Central banks worldwide now struggle with complex challenges when adopting Bitcoin and other cryptocurrency types as financial reserves. Despite the promising advantages of cryptocurrencies, the SNB maintains its caution because of issues with price volatility, limited liquidity, and security risks. 

The financial industry’s evolution requires central banks to make thorough assessments of the potential benefits and possible drawbacks of including these assets in their official reserves. The Swiss National Bank maintains its position against Bitcoin use as a reserve asset because it places stability above the possibilities offered by innovative digital currencies.