A group of campaigners in Switzerland have announced the end of their effort to require the Swiss National Bank (SNB) to hold bitcoin as part of its reserves, after failing to gather enough signatures to prompt a national referendum. The initiative collected only about half of the 100,000 signatures needed.
Campaign goals and process
The proposed campaign sought to amend the Swiss Constitution, obliging the SNB to include bitcoin alongside gold in its monetary reserves. Organizers aimed to bring this amendment to a national vote, as is possible in Switzerland’s direct democracy system. To trigger a public referendum, at least 100,000 signatures had to be collected within an 18-month window.
The Swiss Federal Chancellery had formally registered the proposal as a constitutional amendment. The proposal outlined mandatory holdings of both gold and bitcoin in the SNB’s reserves. However, it did not specify exactly what proportion of the reserves would be allocated to these assets.
Rationale behind the initiative
Supporters defined bitcoin as a neutral, independent alternative to traditional financial assets. They argued that adding bitcoin would act as a form of insurance to balance risks stemming from heavy reliance on US dollar and euro reserves. Reuters reports that roughly three-quarters of the SNB’s foreign reserves are currently held in dollar and euro-denominated assets.
Despite the proponents’ emphasis on bitcoin’s potential, the initiative failed to gain adequate public traction. After falling short of the necessary 100,000 signatures in Switzerland’s direct democracy framework, the campaign committee announced they would be discontinuing the effort.
The central bank’s stance
The SNB had previously made its opposition clear, stating last year that it did not view bitcoin as suitable for its reserves. Bank officials cited concerns about the volatility and liquidity issues of crypto assets, describing them as inappropriate for use as reserve holdings.
This unwavering policy approach from the SNB had long been considered a significant obstacle for the campaigners. The bank has consistently maintained a commitment to traditional monetary policies supported by gold and foreign currency reserves.
While campaigners argued for bitcoin as a neutral store of value within the Swiss National Bank’s reserves, their proposal failed to attract enough support both in the public and on the political stage.
Even though cryptocurrencies like bitcoin are commonly used in Switzerland, this episode shows that a dramatic shift in the central bank’s reserve policy is unlikely in the near future. With insufficient backing for the initiative, the SNB is expected to maintain its current reserve strategy.
