Swiss central bank chief rejects Bitcoin as reserve currency, citing high volatility

Bitcoin’s high volatility and limited liquidity make it unsuitable as a national reserve currency, Swiss National Bank (SNB) Chairman Martin Schlegel stated, as discussions emerge about holding a referendum on the matter in the affluent country.

Cryptocurrencies do not meet the standards “that a good currency should have,” the head of the Swiss national bank said in an interview published Saturday in Swiss media.

They are “extremely volatile,” making them difficult to manage. At the same time, currency reserves “must be very liquid so that they can be used quickly,” said Schlegel, who has run the country’s central bank since October 2024.

The SNB intervenes frequently in currency markets to prevent the Swiss franc from appreciating.

‘Cryptocurrencies are just software’

He noted cryptocurrencies are a “niche phenomenon” mostly used for speculation and that they raise security issues because they “are basically just software.”

In December 2024, a popular initiative was launched—as is common under the Swiss system of direct democracy—seeking to require that the central bank’s monetary reserves include Bitcoin, considered the most mature cryptocurrency.

Organizers of the initiative have until the end of June 2026 to collect the 100,000 signatures needed to hold a referendum.

On Friday, bitcoin fell below $80,000 for the first time since November. It has now fallen more than 25% from the peak of almost $110,000 it hit several hours before the inauguration of U.S. President Donald Trump on Jan. 20.