Supporters argue that Switzerland’s reliance on holding 75% of its foreign currency reserves in U.S. dollars and euros exposes the country to potential devaluation risks.
A group of crypto advocates in Switzerland is urging the Swiss National Bank (SNB) to diversify its foreign reserves by adding Bitcoin (BTC), citing concerns over dependence on traditional currencies and exposure to political risks.
According to Reuters, the campaign, which began in December as a constitutional referendum initiative, seeks to legally mandate the SNB to hold Bitcoin alongside gold in its foreign asset reserves.
Supporters contend that Switzerland should revise its reserve strategy to align with the global shift toward multipolarity and decreased reliance on the U.S. dollar and euro.
Luzius Meisser, a board member at Bitcoin Suisse and a key advocate of the initiative, argued that Bitcoin’s monetary policy provides an inflation-resistant alternative to traditional fiat currencies.
Politicians eventually give in to the temptation of printing money to fund their plans, but Bitcoin is a currency that cannot be inflated through deficit spending.
According to Meisser
Meisser is scheduled to present the initiative’s reasoning directly to stakeholders at the SNB’s annual general meeting in Bern this week.
The referendum requires 100,000 verified signatures to move forward to a national vote. If successful, it would mark the first global initiative to mandate Bitcoin holdings by a central bank through constitutional reform.
This move comes as sovereign wealth funds began accumulating Bitcoin in April, according to John D’Agostino, Coinbase’s head of institutional sales.
Proponents of the referendum suggest that allocating just 1% to 2% of the SNB’s nearly $1 trillion Swiss franc reserve portfolio into Bitcoin could safeguard against monetary debasement while minimizing exposure to excessive volatility.
Meisser and others contend that the SNB’s current foreign currency holdings—comprising 75% U.S. dollars and euros—expose Switzerland to foreign political influences and devaluation risks stemming from expansionary fiscal policies abroad.
They also argue that this approach would strengthen Switzerland’s position as a leading hub for blockchain technology.
Switzerland is home to “Crypto Valley” in Zug, a region focused on the crypto industry. Additionally, the country ranked 55th out of 151 nations in Chainalysis’ most recent “Geography of Crypto Report.”
Yves Bennaim, a supporter of the initiative and member of the Bitcoin Initiative group, addressed concerns regarding security and liquidity.
He described Bitcoin’s technology as one of the most secure and resilient digital systems ever developed, backed by a $2 trillion market cap and daily trading volumes in the billions.
The global Bitcoin market is the most liquid and established among digital assets. We are not saying go all in with Bitcoin, but a small allocation can hedge against monetary and geopolitical risks.
Bennaim added
Despite the growing support for the campaign, the Swiss National Bank has maintained its skepticism toward cryptocurrency.
In March, SNB Chairman Martin Schlegel reaffirmed the institution’s concerns, pointing to Bitcoin’s high volatility, limited liquidity in crisis situations, and technical vulnerabilities as reasons it remains excluded from official reserves.
Cryptocurrencies are essentially software. And we all know that software can often have bugs and other vulnerabilities.
He Says
Schlegel maintained his reservations despite the approval in December by Switzerland’s Federal Chancellery to submit a constitutional amendment proposal that would mandate the SNB to hold a portion of its reserves in Bitcoin.
