Swiss National Bank Rejects Bitcoin Reserves Citing Volatility and Liquidity Concerns

The Swiss National Bank (SNB) has rejected adding bitcoin to its reserves, citing concerns over market liquidity and high volatility. At the bank’s General Assembly, SNB President Martin Schlegel emphasized that cryptocurrencies do not currently meet the institution's strict standards for reserve assets, especially during times of crisis.

The Bitcoin Initiative, a pro-bitcoin advocacy group, argued that a 1% allocation to bitcoin would have nearly doubled SNB's returns since 2015 with only a slight increase in volatility. They stressed that bitcoin’s influence on a diversified portfolio is more critical than its standalone volatility. Luzius Meisser of Bitcoin Initiative noted bitcoin’s resilience, 24/7 liquidity, and security, pointing out that the U.S. has begun building a strategic bitcoin reserve under President Donald Trump's new executive order.

Despite indirect exposure through stocks like Tesla and Marathon Digital Holdings, Schlegel reaffirmed that the SNB would not directly add bitcoin to its reserves. He suggested political sensitivities, particularly relations with the EU, could be a factor. European Central Bank President Christine Lagarde and other European leaders have consistently criticized bitcoin, reinforcing resistance across major central banks.

Meanwhile, the SNB is advancing its exploration of central bank digital currencies (CBDCs) through pilot projects, although it remains wary of cryptocurrencies. In contrast, the U.S., under Trump’s administration, is distancing itself from CBDCs while embracing bitcoin stockpiling, signaling a significant policy divergence in global monetary strategies.