Switzerland’s central bank boss said bitcoin is too volatile and not liquid enough for use as a reserve currency. His comments come amid calls for a referendum on the issue in the wealthy nation.
Cryptocurrencies do not meet the standards “that a good currency should have,” Martin Schlegel said. Newspapers of the Tamedia media group published the interview on Saturday.
They are “extremely volatile,” which makes them difficult to manage. In contrast, currency reserves “must be very liquid so that they can be used quickly,” said Schlegel. He has run the country’s Swiss National Bank (SNB) since October 2024.
The SNB intervenes frequently on currency markets to prevent the Swiss franc from appreciating.
A Referendum Push
He noted that cryptocurrencies are a “niche phenomena” mostly used for speculation. They also raise security issues because they “are basically just software.”
In December 2024, campaigners launched a popular initiative, as is common under the Swiss system of direct democracy. It seeks to require that the central bank’s monetary reserves include bitcoin, considered the most mature cryptocurrency.
Organizers of the initiative have until the end of June 2026 to collect the 100,000 signatures needed to hold a referendum.
Meanwhile, bitcoin fell below $80,000 on Friday for the first time since November. It has now fallen more than 25 percent from the peak of almost $110,000. That peak came several hours before the inauguration of President Donald Trump on January 20.
