Swiss National Bank President Dismisses Bitcoin: A Comedy of Errors! 😂

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What to know:

  • In a rather theatrical display, Swiss National Bank (SNB) President Martin Schlegel has waved off the notion of adding bitcoin to the central bank’s reserves, as if it were a particularly unpleasant guest at a dinner party.
  • Schlegel, with all the gravitas of a seasoned banker, cited volatility, liquidity concerns, and security risks—because who wouldn’t want their money to be as stable as a tightrope walker on a windy day?
  • His remarks come amidst a Swiss citizens’ initiative that is pushing for the SNB to embrace bitcoin and gold, as if they were the latest fashion trends.

In a delightful twist of fate, President Schlegel has firmly rejected the idea of holding bitcoin as part of Switzerland’s central bank reserves, citing a lack of stability, liquidity, and security—essentially the trifecta of financial prudence, according to local media.

Speaking to the Tamedia group, Schlegel elaborated on his three primary concerns regarding cryptocurrencies. First on the list is their volatility, which he likened to a rollercoaster ride—thrilling, but not exactly suitable for long-term value preservation.

“Secondly, our reserves need to be highly liquid,” Schlegel explained, “so they can be used quickly for monetary policy purposes if needed.” He then pointed out the inherent lack of security in software-based assets, quipping, “We all know that software can have bugs and other weak points.” Ah, the joys of modern technology!

Schlegel’s words come amid a growing debate in Switzerland over this nascent asset class. A recent initiative is pushing for a constitutional amendment requiring the SNB to hold bitcoin in its reserves alongside gold, as if they were old friends reunited after years apart.

The initiative, launched in December and led by the ever-ambitious entrepreneur Yves Bennaim, does not delve into the specifics of bitcoin allocations but specifies it should be built up from the bank’s earnings. It has 18 months to collect 100,000 signatures to trigger a nationwide vote on the topic—because nothing says democracy like a good old-fashioned petition!

Despite Switzerland’s growing acceptance of cryptocurrencies, with various Swiss banks offering customers cryptocurrency-related services, Schlegel has dismissed the asset class as a “niche phenomenon.” Currencies, he told Tamedia, have always been in competition, and he maintained that the bank is “not afraid of competition from cryptocurrencies,” citing the continued strength of the Swiss franc—because who wouldn’t want to bet on the tried and true?

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2025-03-01 21:43