Harsh Reaction to Bitcoin and Cryptocurrency Reserves from the Central Bank: Here are the Reasons! - Coin Bulletin

Swiss National Bank President (SNB) Martin Schlegel opposed the bank holding cryptocurrencies by arguing that Bitcoin is not a good reserve asset (BTC).

Swiss National Bank President Martin Schlegel opposed the idea of holding Bitcoin in the bank's reserves and stated that cryptocurrencies do not possess the fundamental qualities that a good currency should have.

In an interview with the Swiss press, Schlegel pointed out that cryptocurrencies have high volatility, lack of liquidity, and security vulnerabilities. Schlegel, who said that crypto assets are not suitable for long-term value preservation, emphasized that the SNB's reserves should be readily available. Schlegel stated that the fact that cryptocurrencies are entirely software-based poses security risks, saying "We all know that software can contain errors and weaknesses."

Schlegel's comments came at the same time as the initiative in Switzerland calling for Bitcoin to be accepted as a reserve asset. Launched in December and supported by entrepreneur Yves Bennaim, this campaign aims to force the SNB to hold Bitcoin by making a constitutional change.

To be able to submit this proposal to a national referendum, 100,000 signatures must be collected within 18 months.

Known for its cryptocurrency-friendly policies, in Switzerland, some banks offer digital asset services, yet Schlegel still described Bitcoin as a "niche phenomenon." Schlegel, stating that the Central Bank is not afraid of competition with cryptocurrencies, defended the strength of the Swiss franc.