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Swiss Bitcoin Resistance: The Swiss National Bank Reaffirms Stance Against Cryptocurrency Reserves

The Swiss National Bank (SNB) has reiterated its opposition to holding Bitcoin as part of its foreign exchange reserves.

During a recent shareholder meeting, Chairman Martin Schlegel highlighted that Bitcoin fails to meet the necessary criteria for reserve assets, primarily due to concerns about liquidity and extreme volatility.

Amid growing global economic uncertainty, advocates have launched a referendum initiative aiming to amend the constitution to require the SNB to diversify its reserves by including Bitcoin alongside traditional assets like gold.

Schlegel dismissed these calls, emphasizing that cryptocurrencies do not provide the stability of current reserve assets, which predominantly remain in euros and dollars.

Bitcoin's rapid value fluctuations were described by Schlegel as “very, very high,” which he believes undermines its effectiveness as a stable reserve.

Notably, while the SNB remains firmly against direct Bitcoin holdings, it does hold indirect exposure through investments in companies that possess Bitcoin assets.

The push for Bitcoin inclusion in reserves is part of a broader global dialogue about the role of cryptocurrencies in national economic strategies.

Countries like the United States are beginning to adopt Bitcoin reserves, creating a contrast with Switzerland's conservative approach.

Despite mounting external pressure, the SNB's steadfast stance reflects significant apprehensions over potential market instability associated with cryptocurrencies.

As the debate continues, it appears Bitcoin is unlikely to be integrated into Switzerland’s traditional reserve structure anytime soon.