The President of the Swiss National Bank, Martin Schlegel, has expressed reservations about incorporating Bitcoin into Switzerland’s official reserves. During a recent address, Schlegel highlighted critical issues surrounding volatility, liquidity, and security risks associated with cryptocurrencies. He pointed out that the unpredictable nature of Bitcoin does not align with the central bank’s objective of safeguarding its investments. Additionally, Schlegel emphasized the essentiality of maintaining reserves that are readily liquid to facilitate prompt monetary policy actions as required.
Despite acknowledging the crypto market’s impressive valuation of almost $3 trillion, Schlegel described the sector as a “niche phenomenon” within the larger financial ecosystem. He firmly believes that Bitcoin and other digital currencies lack the stability necessary to supplant the Swiss Franc. As the digital currency landscape continues to evolve, the Swiss National Bank remains committed to ensuring financial stability and security for its monetary operations.