## Swiss National Bank President Martin Schlegel Shares His Views on Bitcoin
Martin Schlegel, the President of the Swiss National Bank (SNB) since October 2024, has expressed his reservations about Bitcoin being used as a national currency, citing its excessive volatility as a primary concern. Schlegel favors more stable assets like gold and bonds, which can provide a sense of security in unpredictable markets. In contrast, Bitcoin’s price can fluctuate dramatically in a short time, contributing to market instability. This volatility is a key reason why Schlegel does not consider Bitcoin a suitable asset for the central bank, as he prioritizes investments that help stabilize the financial landscape.
Schlegel emphasizes that a national bank is not obligated to offer cryptocurrencies. While he does not advocate for restricting cryptocurrencies in other banking institutions, he believes they may not be the best fit for a central bank’s operations. He further notes that cryptocurrencies currently hold a relatively small market share compared to traditional assets, leading him to categorize Bitcoin as a “niche phenomenon.”
According to Schlegel, cryptocurrencies do not align with the expectations set for conventional currencies. He points out that Bitcoin operates outside the regulatory frameworks typically associated with currencies. A central bank relies on these regulatory structures to manage a currency effectively. Consequently, Schlegel concludes that the decentralized nature of Bitcoin complicates its management by a central bank.
Two significant factors have influenced Schlegel’s stance on the inappropriateness of cryptocurrencies for a central bank: 1) their extreme volatility and 2) their lack of liquidity. In times of crisis, a central bank must be able to access funds quickly, and Bitcoin’s conversion to fiat money remains a challenge.
In December 2024, a committee advocated for the central bank to consider adopting Bitcoin, presenting a document titled “For a financially strong, sovereign, and responsible Switzerland.” This committee initiated a petition, gathering signatures across Switzerland. Over 18 months, they successfully collected more than 100,000 signatures, aiming to compel the central bank to embrace Bitcoin.
In response, Schlegel reiterated that Bitcoin is not a viable option for a central bank, reiterating his concerns about its volatility and liquidity issues. He added that liquidating Bitcoin reserves in significant amounts during a crisis would be nearly impossible. Meanwhile, the initiative “For a financially strong, sovereign, and responsible Switzerland” continues to advocate for Bitcoin reserves. They plan to amend Article 99, Paragraph 3 of the Swiss constitution to require the central bank to allocate Bitcoin reserves. Currently, the Swiss central bank is mandated to hold gold reserves. The group has published their demands in the Federal Bundesblatt, allowing them to gather 100,000 signatures until June 30, 2026.
