BERN (Reuters) – The head of the Swiss National Bank said on Friday that cryptocurrencies failed to meet the institution’s currency reserve standards, advocating that crypto calls will hold Bitcoin as a hedge against the growing global economic risks.
Cryptocurrency campaigners are putting pressure on SNB to buy Bitcoin, claiming that the economic disruption caused by US President Donald Trump’s tariffs has made it even more important for central banks to diversify reserves.
They have launched a referendum campaign to change the Swiss constitution and are asking SNB to keep Bitcoin in its preparation along with gold.
However, SNB Chairman Martin Schlegel rejected the idea at a central bank shareholders meeting in Bern.
“Cryptocurrencies cannot currently meet the requirements for currency reserve,” he said.
Market liquidity is a concern, he said, as central banks had to always be able to buy and sell foreign exchange.
Cryptocurrencies usually show fluctuations in value, “very very high,” Schlegel said.
Schlegel’s comments, after Luzius Meiser, founder of the Bitcoin Initiative, which is driving referendum, told the meeting that Bitcoin is a “special asset” and a valuable alternative to traditional government debt.
“In a scenario that most of you think is normal, you have to admit that it may not be very valuable,” he said. “But in a particular scenario of a multipolar world order that wanes government trust in debt, Bitcoin is worth a lot.”
(Reporting by John Leville, Editing by Joe Babiel)