Swiss National Bank chief dismisses Bitcoin reserve calls
An official of the Swiss National Bank dismissed calls for the institution to add Bitcoin to its reserves as a hedge against the ongoing macroeconomic turmoil.
According to an April 25 Reuters report, Swiss National Bank Chairman Martin Schlegel said that “cryptocurrency cannot currently fulfil the requirements for our currency reserves” during a shareholder meeting in Bern earlier today. The comments come amid mounting pressure from the local crypto industry to add Bitcoin (BTC) to the central bank’s reserves.
Campaigner Luzius Meisser, a board member of cryptocurrency broker Bitcoin Suisse, told Reuters that “holding bitcoin makes more sense as the world shifts towards a multipolar order.” He claimed that the need is even more dire now that “the dollar and the euro are weakening.”
This is not the first time Schlegel has pushed back against the idea. Reports from early March quoted Schlegel saying that he doesn’t want to make Bitcoin a reserve asset in Switzerland, citing a lack of stability, liquidity concerns and security risks.
Related: Swiss canton of Bern votes to study Bitcoin mining feasibility
Switzerland’s campaign for a Bitcoin reserve
On the last day of 2024, the Swiss Federal Chancellery initiated a proposal to constitutionally mandate the Swiss National Bank to hold Bitcoin on its balance sheet. The proposal needs to gather 100,000 signatures to trigger a referendum in Switzerland.
The initiative requests to change the third paragraph of Article 99 of the constitution. The relevant text currently states:
“The Swiss National Bank shall create sufficient currency reserves from its revenues; part of these reserves shall be held in gold.”
If successful, the campaign would result in adding “and in Bitcoin.” to the end of the paragraph. The initiative saw the participation of the Swiss Bitcoin nonprofit think tank 2B4CH, which was responsible for preparing and submitting the documents. 2B4CH had some ties to industry heavyweights, with Giw Zanganeh, vice president of energy and mining at leading stablecoin issuer Tether, helping launch the campaign.
Related: Crypto bank Sygnum hits unicorn status with new $58M raise
The campaign is still ongoing
Meisser claims that holding Bitcoin would free the central bank from the political influence of its foreign currency holdings, most of which are in US dollars and euros. According to him, “politicians eventually give in to the temptation of printing money to fund their plans, but bitcoin is a currency that cannot be inflated through deficit spending.” 2B4CH founder and chairman Yves Bennaïm told Reuters:
“We are not saying — go all in with bitcoin, but if you have nearly 1 trillion francs in reserves, like the SNB does, then it makes sense to have 1–2% of that in an asset that is increasing in value, becoming more secure, and that everyone wants to own.”
Switzerland is a hub for blockchain enterprises, with its “Crypto Valley” in the town of Zug being the location where Ethereum was founded. The nation continues to generate crypto initiatives, with global grocery giant Spar rolling out Bitcoin-based payments in a Swiss city earlier this month.
The crypto Valley surpassed the $593 billion valuation mark, showcasing the growth trajectory of the region’s blockchain industry in 2024. Last year, the area saw the emergence of 17 crypto startup unicorns.
Magazine: Crypto Valley and the Crypto Oasis: Ralf Glabischnig
An Arizona woman was sentenced to 8.5 years for aiding DPRK hackers in infiltrating over 300 US crypto and tech firms, generating $17 million of illicit gains.
Sir Keir Starmer is under increasing pressure to recognise a Palestinian state, with MPs signing a mass cross-party letter demanding he take the step.
The letter is being organised by the Labour backbencher Sarah Champion, who also sits as the International Development Committee Chair.
Politics Live: Starmer to have ’emergency’ Gaza call with France and Germany
They write: “British recognition of Palestine would be particularly powerful given its role as the author of the Balfour Declaration and the former Mandatory Power in Palestine”.
“Since 1980 we have backed a two-state solution. Such a recognition would give that position substance as well as living up to a historic responsibility we have to the people under that Mandate.”
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‘Many more deaths unless Israelis allow food in’
Earlier this month, nearly 60 Labour MPs called on David Lammy and the Foreign Office to immediately recognise Palestine as a state in a private letter, but this new call shows how dissatisfied many still are with the government’s refusal to change its stance on the issue.
Late last night Number 10 released a statement on Gaza calling the situation “unspeakable and indefensible,” but a growing number of Labour backbenchers fear it’s not enough.
Read more:
British surgeon claims IDF shooting Gazans in specific areas
France to become first G7 nation to recognise Palestine as a state
Dozens of MPs call for UK to recognise Palestine as a state
In light of a tweet by the French President Emmanuel Macron also sent last night declaring France would recognise a Palestinian state in September at a UN conference, a number of MPs now say Number 10’s current position is untenable.
“They had said they wanted to be in lockstep with allies, but this means that position won’t hold,” said one Labour MP.
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Emily Thornberry has told Sophy Ridge that it’s “insulting” that the Israeli government rejected a statement calling for a ceasefire.
Peter Kyle, the technology secretary, this morning defended the government’s resistance to calls for immediate UK recognition of a Palestinian state.
“We want Palestinian statehood. We desire it, and we want to make sure the circumstances can exist where that kind of long-term political solution can have the space to evolve and make sure that it can become a permanent circumstance that can bring peace to the entire region,” he told Sky News.
“But right now, today, we’ve got to focus on what will ease the suffering, and it is extreme, unwarranted suffering in Gaza that has to be the priority for us today.”
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Aid waiting to be distributed in Gaza
An emergency call with Germany and France is scheduled for today to discuss what Sir Keir described as a “human catastrophe” which has “reached new depths”.
The Foreign Office have maintained they are committed to recognising a Palestinian state but have expressed a willingness to do so only when it will have the “most impact in support of a peace process”.
They say: “We continue to provide lifesaving aid to support Palestinians in Gaza and the West Bank, and to work closely in support of the Palestinian Authority.”
A Downing Street spokesperson also confirmed their position on Palestinian statehood remains unchanged.
Regulatory clarity is opening the door for banks, asset managers, and crypto firms to roll out new stablecoin products.
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