Swiss National Bank (SNB) President Martin Schlegel publicly declared that cryptocurrencies, including Bitcoin, are unsuitable for inclusion in the country’s official reserve assets. At a financial conference, Schlegel emphasized that digital currencies’ extreme price volatility and uncertain liquidity make them unreliable for safeguarding national monetary stability.
“Cryptocurrencies are not currently suitable due to their high volatility and questionable liquidity in crisis situations.”
Schlegel stated.
This firm position reflects ongoing caution among central banks worldwide regarding integrating decentralized digital assets into traditional financial frameworks. The SNB’s decision underscores regulators’ challenges in balancing innovation with economic stability.
This announcement comes amid growing debates about the role of cryptocurrencies in national reserves and institutional portfolios. The SNB’s rejection of cryptocurrencies as reserve assets has elicited mixed reactions. Like Luzius Meisser, Bitcoin advocates argue for its potential as a transformative asset, while many economists prioritize monetary stability. Bitcoin (BTC) currently trades around $94,439, with a market cap of over $1.87 trillion and a dominance of 63.9%. It experienced a slight 0.26% dip in 24 hours but has risen over 13% in the past month, indicating market optimism despite regulatory challenges.
The SNB’s announcement may influence other central banks’ policies and investor sentiment, potentially slowing institutional adoption of cryptocurrencies in official reserves. However, regulatory debates continue to evolve, and the perception of digital assets as reliable financial instruments remains a contentious topic.
Switzerland’s central bank reaffirms the challenges of cryptocurrencies gaining acceptance as reserve assets, primarily due to volatility and liquidity concerns. While innovation in digital finance advances rapidly, traditional institutions remain cautious, underscoring the complex path ahead for blockchain-based assets seeking mainstream financial integration.
Meanwhile, Swiss digital asset bank Sygnum achieved “unicorn” status with a valuation exceeding $1 billion after a $58 million Strategic Growth Round led by Fulgur Ventures, with participation from new and existing investors and Sygnum team members.
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