Love with reservations: why Switzerland rejected Bitcoin reserve

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Eugene Komchuk

21.03.2025

Love with reservations: why Switzerland rejected Bitcoin reserve — Switzerland and Bitcoin

Switzerland has long been regarded as one of Europe’s most crypto-friendly nations. However, despite numerous cryptocurrency initiatives, the country has ultimately rejected the idea of creating a BTC reserve. But why has the Alpine Republic turned its back on full-scale Bitcoinization?

Switzerland has officially ruled out including Bitcoin or other cryptocurrencies in its currency reserves. The head of the Swiss National Bank (SNB), Martin Schlegel, explained this by citing the extreme volatility and regulatory uncertainty surrounding digital assets.

“We have no plans to buy crypto assets. As you know, cryptocurrencies have large value fluctuations,” Schlegel emphasized.

According to him, central bank reserves should support monetary stability, and cryptocurrencies do not meet this requirement. He also expressed concerns about the liquidity of digital assets and their “programmatic nature, which makes them vulnerable.” But why did the head of the central bank make such a radical decision now?

Who proposed a Bitcoin reserve?

The idea of a cryptocurrency reserve in Switzerland first emerged in 2021, when the think tank 2B4CH, founded by Swiss Bitcoin enthusiast Yves Bennaïm, proposed a constitutional amendment that would require the SNB to include Bitcoin in its national reserves alongside gold. Despite media buzz, the proposal never made it to a referendum.

In spring 2024, a new initiative gained traction, with crypto advocates launching an information campaign to promote adding Bitcoin to Switzerland’s national reserve. They argued it would strengthen the country's financial independence from the European Central Bank (ECB).

By December, the Swiss Federal Chancellery had officially proposed the idea, and a petition drive was launched to collect the 100,000 signatures required to hold a nationwide referendum. Petition forms were even distributed at the World Economic Forum in Davos.

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The SNB leadership responded by publicly expressing skepticism toward the initiative. Even if enough signatures are gathered, it seems unlikely to result in actual policy change.

Switzerland’s crypto projects

This firm rejection of a Bitcoin reserve seems strange, considering Switzerland’s longstanding support for digital assets. The country has cultivated a favorable environment for crypto companies over many years.

A key player in this development is Crypto Valley—a region in the canton of Zug where dozens of blockchain companies, startups, and funds have set up offices. Thanks to its business-friendly tax regime and support from local authorities, Zug has become a global magnet for the crypto industry.

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Switzerland’s financial institutions have also embraced crypto. Licensed banks such as SEBA Bank and Sygnum openly provide services for buying, selling, and storing digital assets.

Another critical factor is the Swiss financial regulator. The Financial Market Supervisory Authority (FINMA) was the first in Europe to establish clear legal frameworks for crypto companies, allowing them to operate and raise funds with legal certainty.

Switzerland also invests in blockchain education and research. Leading universities like ETH Zurich and the University of Basel are involved in blockchain innovation, helping to develop new technologies in DeFi, Web3, and tokenization.

Public dialogue is also a priority. The Plan ₿ Bitcoin conference, held annually in Lugano, brings together thought leaders to discuss digital economies and regulatory policy. In 2023, the city even unveiled a statue honoring Bitcoin’s creator.

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That same year, Lugano launched a municipal initiative to accept Bitcoin and USDT for certain public services, making the city a real-world example of crypto adoption. And this is just one of many crypto-forward efforts across the region.

European conservatism

Even as the United States inches closer to creating a national Bitcoin reserve, Switzerland—despite its advanced crypto infrastructure—has no plans to follow suit.

Its extensive experience and clear interest in blockchain haven’t swayed the Swiss National Bank, which remains cautious. The SNB sees more risk than reward in cryptocurrencies. As a result, Switzerland appears content to be an observer rather than a participant in state-level crypto experiments.

That stance may change if the U.S. and other major economies fully adopt crypto reserves. But for now, the Alpine republic is choosing financial stability over innovation, opting to be a business-friendly crypto hub rather than a nation hedging its future on digital assets.

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