SNB Rejects Bitcoin Reserve Bid, Trusts Swiss Franc’s Stability

Liquidity and Volatility Top the SNB’s Concerns

Schlegel outlined two core issues: Market depth: The SNB must be able to transact billions swiftly; crypto markets remain too thin for such scale. Extreme price swings: Bitcoin’s double-digit intraday moves are incompatible with the Bank’s mandate to safeguard the real value of its reserves, which today are dominated by foreign government bonds, gold and—crucially—a strong Swiss franc.

Grass-Roots Campaign Pushes for Constitutional Change

Pro-crypto activists, led by Bitcoin Initiative co-founder Luzius Meisser, have launched a referendum drive to oblige the SNB to allocate part of its reserves to bitcoin alongside gold. They argue that President Trump’s tariff shocks and rising global debt make diversification urgent and position bitcoin as a hedge against eroding trust in sovereign assets.

Why the Swiss Franc Remains the Ultimate Hedge

While campaigners tout bitcoin as a “special asset,” the franc’s track record still commands premium safe-haven status: Lowest G10 inflation (≈ 0.3 %) preserves purchasing power. Robust external position** and modest public debt underpin investor confidence. SNB policy flexibility—including readiness to use negative rates or FX swaps—offers proven tools to manage shocks without adopting highly volatile instruments.

Outlook: Crypto on the Sidelines, Franc in the Spotlight

Unless public opinion swings dramatically, the referendum faces an uphill battle against decades of conservative reserve management. For now, the SNB signals that a stable Swiss franc—backed by gold and high-grade bonds—remains its preferred shield against global economic turbulence.