The head of Switzerland’s central bank, Martin Schlegel, has firmly rejected the idea of using bitcoin as a reserve currency, citing the cryptocurrency’s volatility and lack of liquidity. Schlegel’s remarks come in the wake of a growing public debate in Switzerland about the potential inclusion of bitcoin in the Swiss National Bank’s (SNB) monetary reserves. In an interview published on Saturday by the Tamedia media group, Schlegel explained that cryptocurrencies like bitcoin do not meet the essential criteria required for a reliable reserve asset.
Schlegel, who has been at the helm of the Swiss National Bank since October 2024, emphasized that for a currency to be effective as a reserve, it needs to be stable and highly liquid. Bitcoin, however, fails to meet these conditions due to its extreme price fluctuations, which can make it difficult to manage as a store of value. “Cryptocurrencies are extremely volatile, making them difficult to manage,” Schlegel stated, adding that a reserve currency must be “very liquid so that it can be used quickly.” The central bank chief noted that the current volatility of bitcoin makes it unsuitable for use in managing national reserves.
Furthermore, Schlegel argued that cryptocurrencies, including bitcoin, are largely “niche phenomena” and are mostly used for speculative purposes rather than as stable forms of currency. He also raised concerns over the security of cryptocurrencies, describing them as “basically just software,” which presents additional risks compared to traditional reserve assets. The Swiss National Bank is known for its frequent interventions in currency markets, particularly to prevent the Swiss franc from appreciating too rapidly, further reinforcing the challenges bitcoin would present in such a role.
Schlegel’s comments come amid a growing public initiative in Switzerland to integrate bitcoin into the country’s central bank reserves. In December 2024, a popular initiative was launched under Switzerland’s unique system of direct democracy, which allows citizens to propose legislation through referenda. The initiative calls for the inclusion of bitcoin in the Swiss National Bank’s monetary reserves, with a specific focus on the cryptocurrency as the most mature and widely adopted digital asset.
Organizers of the initiative now have until June 2026 to collect the required 100,000 signatures needed to trigger a national referendum on the issue. If successful, the referendum could potentially lead to significant changes in how the Swiss National Bank handles its monetary reserves. However, Schlegel’s recent comments strongly suggest that the central bank is unlikely to embrace bitcoin in this capacity, given its concerns about the asset’s volatility and lack of liquidity.
The timing of these remarks is also notable, as bitcoin has recently experienced a significant drop in value. On Friday, the cryptocurrency fell below $80,000 for the first time since November 2024, continuing its downward trend. Bitcoin’s price has now decreased by more than 25% from its peak of nearly $110,000, which was recorded just hours before the inauguration of President Donald Trump on January 20. This sharp decline further underscores Schlegel’s concerns about the cryptocurrency’s instability as a reliable financial asset.
Despite the central bank’s rejection of bitcoin as a reserve currency, the debate surrounding digital currencies and their potential role in the global financial system is far from over. As governments and central banks continue to explore the implications of digital assets, Switzerland’s referendum could be a key moment in the ongoing conversation about the future of cryptocurrencies in traditional financial systems. However, for now, Schlegel’s position highlights the challenges that cryptocurrencies face in gaining widespread acceptance as stable, liquid assets for national reserves.