Switzerland is contemplating a bold shift in its financial policy, as advocates push to integrate Bitcoin into the country’s central bank reserves. The proposal, which seeks to enshrine Bitcoin alongside traditional assets like the dollar, euro, and gold, is gaining momentum in the wake of growing global interest in cryptocurrencies.
Bitcoin enthusiasts have initiated a campaign to gather 100,000 signatures, a necessary threshold under Switzerland’s system of direct democracy, to trigger a national referendum. If successful, the process could lead to a public vote that might redefine the nation’s monetary landscape. However, any vote on the issue is still years away, allowing ample time for proponents to lobby the public and policymakers.
The push is aimed at challenging the conservative stance of the Swiss National Bank (SNB), which remains cautious about embracing Bitcoin, an asset that its officials have struggled to accept as viable or stable. Despite this, the campaigners see potential for the cryptocurrency to offer Switzerland a hedge against foreign influence, citing Bitcoin’s immunity from state interference and its global decentralization.
“Most of the SNB’s assets are either in euros or dollars, which ties us to the economic policies of other nations,” said Yves Bennaim, chair of the committee behind the campaign. “Bitcoin presents an opportunity to invest in something beyond the control of any single country.”
Switzerland’s openness to cryptocurrency is well-established. A study by the Lucerne University of Applied Sciences and Arts found that 11% of the Swiss population already holds digital assets. Crypto-related infrastructure is widespread, including Bitcoin ATMs in towns and the ability to purchase Bitcoin from ticket machines operated by the national railway. Several Swiss municipalities, such as Lugano, have adopted Bitcoin as a legitimate method of payment for services like taxes and fines.
The country’s regulatory environment has been a key factor in fostering this crypto-friendly atmosphere. Switzerland was the first to award licenses to crypto banks, and major financial institutions, including government-owned PostFinance, now offer crypto services. Zug, known as Crypto Valley, has become a hub for crypto firms, further cementing the country’s position as a crypto-forward nation.
Despite this supportive climate, convincing the Swiss National Bank to alter its approach to reserve assets may prove difficult. The SNB has expressed skepticism about Bitcoin’s volatility, with officials warning that the cryptocurrency’s price swings could undermine the stability of the bank’s reserves. The SNB’s president, Martin Schlegel, dismissed cryptocurrencies as a “niche phenomenon” in November, and the institution is focused on developing a central bank digital currency (CBDC) instead.
UBS economist Alessandro Bee argues that Bitcoin’s volatility presents a significant risk to the SNB’s credibility, especially if the value of its holdings were to plummet during market downturns. “With high volatility, there is a risk that the SNB’s equity will shrink when markets fall,” Bee said. “Over time, the SNB’s credibility could suffer.”
However, the cryptocurrency movement in Switzerland is growing. In Zurich, Rino Borini, the founder of a cryptocurrency training center, has seen increasing interest in his workshops following Bitcoin’s surge past $100,000 in December. Participants from all walks of life—entrepreneurs, warehouse workers, and retirees alike—are signing up for courses to learn about Bitcoin and other cryptocurrencies.
Switzerland’s decentralized nature, with its tradition of direct democracy and autonomy, has made it a fertile ground for cryptocurrency advocacy. “People here are more open to Bitcoin as a store of value compared to other countries,” Borini said, drawing parallels between Bitcoin’s decentralized nature and Switzerland’s own political and financial independence.
Yet, influencing the Swiss National Bank’s policy is a tall order. Previous public initiatives aimed at dictating the SNB’s asset management have failed, and many Swiss citizens place a high level of trust in their national bank. Claude Maurer, chief economist at BAK Economics, noted, “I don’t think an initiative to tell the SNB what assets to invest in would stand a chance.”
Despite these challenges, supporters of Bitcoin see an opportunity to continue raising awareness and building momentum for the cause. As the cryptocurrency landscape continues to evolve, Switzerland may eventually face a reckoning over its stance on digital assets, especially as the global conversation around Bitcoin’s role in national reserves intensifies.
Related topic:
Apollo Global Management Considers Major Stake in Seven & i’s Buyout Plan