Martin Schlegel, the head of the Swiss National Bank (SNB), has rejected the proposal to hold Bitcoin in the Swiss national reserves citing high volatility, liquidity issues, and security risks as reasons for this decision. In response to a citizen initiative advocating for the creation of reserve-backed assets with Bitcoin and gold, Schlegel argued that Bitcoin’s high volatility makes it unsuitable as a long-term reserve asset. He also emphasized the need for high liquidity in central bank reserves for swift monetary policy actions. Additionally, Schlegel raised security concerns, stating that Bitcoin, as a software, remains vulnerable to bugs and weaknesses. However, the Swiss Bitcoin Initiative launched in December 2024 aims to gather 100,000 signatures to bring this issue to a national vote.
