During the annual general meeting of shareholders, Thomas Jordan, the chairman of the Swiss National Bank (SNB), voiced his skepticism about the idea of incorporating Bitcoin into the bank’s currency reserves. Amid calls from cryptocurrency advocates for legislative changes to allow cryptocurrencies in Switzerland’s national reserves, Jordan remains cautious.
Concerns Over Bitcoin’s Suitability for Reserves
Jordan underscored the need for reserve assets to be liquid, sustainable, and easily tradable to facilitate international payments. He pointed out potential drawbacks to adding Bitcoin, such as increased carbon emissions from its mining and transaction processes. The chairman emphasized the importance of these criteria in maintaining effective international financial operations, stating:
“We have not yet decided that we want to invest in Bitcoin—actually for good reasons. They have to be liquid. They have to be sustainable. And we have to be able to sell and buy them easily.”
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Advocacy for Legislative Change
A group led by Yves Bennaïm, a prominent cryptocurrency advocate, has proposed a subtle yet significant change to a constitutional article. This modification would expand the definition of the SNB’s reserves to include not just gold but also Bitcoin. Luzius Meisser, a supporter from Bitcoin Suisse, criticized the SNB’s recent losses on foreign government bonds, arguing that investments in Bitcoin could have been more profitable.
Arguments for Diversification
Supporters like Bennaïm and Meisser believe that including Bitcoin in the SNB’s reserves would not only mark Switzerland’s independence from the European Central Bank but also strengthen the nation’s neutrality and diversify its investment portfolio. They argue that such a step could position Switzerland as a leader in embracing digital currency innovations while maintaining its financial sovereignty.
