Martin Schlegel, President of the Swiss National Bank, shared his views against the proposals to use cryptocurrencies as reserve assets. He stated that cryptocurrencies do not provide sufficient stability as a store of value and pose various risks. Schlegel also expressed his opposition to the proposal initiated by the civil society organization 2B4CH and other communities.
Central Bank’s Perspective
Schlegel highlighted the high volatility of cryptocurrencies, emphasizing their unsuitability for maintaining the bank’s investment value. He noted, “Bitcoin 
$94,820 and other cryptocurrencies are subject to short-term fluctuations,” indicating that sudden market movements could lead to liquidity problems.
Additionally, Schlegel asserted that reserves must possess high liquidity. This is seen as essential for quick availability during monetary policy applications.
Technological and Financial Assessments
Schlegel also pointed out the software-based nature of cryptocurrencies, which makes them prone to errors and technical issues. He stated, “Software can have bugs and other vulnerabilities.”
Furthermore, despite the cryptocurrency market being valued at approximately $3 trillion, Schlegel noted that its market size remains limited compared to the overall financial system. He shared the belief that Switzerland’s official currency, the Swiss franc, would not be affected by these assets.
Proposal and Process Details
The proposal put forth by 2B4CH demands that the bank hold cryptocurrencies on its balance sheet. To implement this proposal, it needs to gather 100,000 signatures. Authorities indicated that the signature collection process would take 16 months.
Taking into account Switzerland’s population, this means that approximately 1.11% of the public’s support would be required. While other countries are evaluating similar practices, some, like Poland, have rejected the idea of using cryptocurrencies as reserve assets. Even if the signatures are collected and voting proceeds, actions will depend on the voting results, indicating a long road ahead.
Martin Schlegel’s statements illustrate that the place of cryptocurrencies within the current financial system is contentious. Ongoing discussions and implementation processes in various countries may provide insights into the future role of these assets.
