Swiss National Bank President Rejects Bitcoin Reserves Over 'Large Fluctuations In Value'

Swiss National Bank (SNB) President Martin Schlegel firmly stated that the SNB has no plans to invest in crypto assets, citing their unsuitability for monetary policy due to value fluctuations, lack of liquidity and an inadequate legal framework.

Addressing the media on Thursday, Schlegel addressed the SNB's position on cryptocurrencies, particularly in light of U.S. President Donald Trump's proposal for a national strategic Bitcoin BTC/USD reserve, emphasizing that such assets do not meet the criteria for the bank's foreign exchange reserves.

Schlegel outlined the specific challenges with cryptocurrencies, stating, "Cryptocurrencies have large fluctuations in value, so this is not given. Also, liquidity is very important, so this FX reserves can be used very quickly for monetary policy."

He further noted additional concerns, adding the lack of a “robust legal framework” and cryptocurrencies being “basically software and as you know, software have bugs.”

The SNB's decision to steer clear of crypto assets comes amid broader discussions on reserve management, including the bank's stance on gold holdings.

Schlegel confirmed that the SNB, which holds 1,040 tons of gold, has no plans to alter its gold reserves, with its last transactions occurring some time ago.

He also addressed potential shifts away from U.S. Treasuries due to Trump's policies but affirmed the SNB's current strategy remains unchanged.

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On the topic of potential global tariffs from Trump's administration, set to begin on April 2, 2025, Schlegel noted the complexity of their impact on Switzerland, saying “the effects are quite complex.”

Addressing past accusations of currency manipulation by Trump, Schlegel defended the SNB's foreign exchange interventions, which have been absent in 2024.

"I can clearly say Switzerland is not a currency manipulator," he asserted, clarifying that previous interventions were solely to maintain price stability, not to gain a competitive advantage.

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