Swiss National Bank Declines Bitcoin Reserves, Citing Liquidity and Volatility Concerns

In a recent statement reported by Coindesk on April 26th, the Swiss National Bank (SNB) has declined to incorporate Bitcoin into its reserve holdings. This decision stems from persistent concerns regarding the inherent liquidity and volatility that characterize the cryptocurrency landscape. SNB President Martin Schlegel articulated his position during a central bank meeting, asserting, “While the market’s liquidity may appear robust, it becomes questionable in times of crisis.” He further emphasized the significant risk posed by the high volatility of cryptocurrencies, which undermines their viability as a long-term store of value. Consequently, the SNB concludes that cryptocurrencies do not presently satisfy the stringent criteria required for their currency reserves. This stance aligns with broader regulatory scrutiny of digital assets in the financial sector, as stakeholders remain cautious about integrating such volatile instruments into financial strategies.