Swiss National Bank declines Bitcoin as reserve currency due to price fluctuations: source

Martin Schlegel, the Swiss National Bank's Governor, has reiterated the central bank's stance against incorporating Bitcoin or other digital currencies into its foreign exchange reserves.

In an interview with Bloomberg, Schlegel cited Bitcoin's (BTC) extreme volatility, lack of stability, and the regulatory hurdles linked to cryptocurrencies as the primary reasons for his apprehension.

He emphasized that the Swiss National Bank's reserves are intended to back its monetary policy, and digital assets do not fit with this objective.

Schlegel's views echo his previous comments from a November 2024 event, where he expressed reservations about cryptocurrencies like Bitcoin and Ethereum (ETH). He described them as niche phenomena that are not suitable for payment purposes due to their significant value fluctuations.

Moreover, Schlegel expressed concerns about the high energy consumption required for cryptocurrency operations and their association with illegal activities, which make them challenging to regulate.

Switzerland and blockchain advancement

Although the SNB is hesitant to adopt digital assets, Switzerland remains a hub for blockchain innovation.

Recently, BX Digital, a subsidiary of the Stuttgart Stock Exchange based in Switzerland, received approval from the Swiss Financial Market Supervisory Authority to operate a blockchain-based trading system.

This platform enables direct settlement and transfer of assets using Ethereum-based blockchain technology, eliminating intermediaries and reducing transaction times and costs.

Additionally, Nexo expanded its Nexo Card to Switzerland and Andorra on Feb. 11 as part of its 2025 Growth Plan. The card, which combines debit and credit functions, reached a 62% adoption rate among eligible users in the European Economic Area.