Swiss National Bank Shuts Down Bitcoin Reserve Proposal—Crypto Advocates Fume

Another day, another central bank clinging to analog money in a digital age.

The Swiss National Bank (SNB) just axed a proposal to add Bitcoin to its reserves—ignoring growing pressure from crypto proponents. The move comes as institutional interest in BTC hits record highs globally.

Behind the scenes: SNB’s risk-averse brass cited volatility and "lack of intrinsic value"—classic central banker speak for "we’d rather hoard gold bars like dragons." Meanwhile, Bitcoin’s market cap flirts with $1.5 trillion.

Finance jab of the day: At least they didn’t suggest replacing their reserves with negative-yielding bonds this time.

SNB Chair Rejects Bitcoin Over Liquidity, Volatility

SNB Chairman Martin Schlegel quickly shot down the idea during the bank’s annual meeting in Bern. He said Bitcoin fails to meet the bank’s CORE reserve standards.

Schlegel pointed to two major issues: low liquidity and extreme price swings. The SNB needs assets it can buy and sell easily. It also prefers holdings that maintain value over time. Cryptocurrencies, in his view, offer neither.

“Crypto assets fluctuate too much,” Schlegel said. “We need stable and liquid reserves.”

Push for Reform Faces Institutional Resistance

Despite rejection from the central bank, crypto advocates plan to keep pushing forward. Their goal is to secure enough support for a national vote.

If successful, Switzerland could become the first nation to legally mandate Bitcoin as part of its official currency reserves. The outcome may set a precedent for other countries reconsidering their reliance on traditional financial instruments.