Swiss Bank Turns Down Bitcoin: “Not Quite Our Style!”

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So, what’s the fuss all about?

  • SNB President Martin Schlegel cited “liquidity” and “volatility” as reasons to reject Bitcoin in the Swiss reserves. Because who needs a little bit of chaos in their lives, right?
  • A 1% Bitcoin slice in 2015 would’ve nearly doubled the SNB’s returns. A missed opportunity for a little extra bling with minimal extra risk, according to the Bitcoin Initiative.
  • Turns out, the Swiss National Bank is still getting a piece of the Bitcoin pie, thanks to U.S. companies with Bitcoin in their portfolios. Oh, the irony!

The Swiss National Bank, in a rare moment of caution, has decided against holding Bitcoin reserves. Why? Oh, because cryptocurrencies, as Schlegel so delicately put it, are “risky”—like high school romance—volatile and unpredictable, especially in times of crisis.

“For cryptocurrencies, market liquidity, even if it may seem okay at times, is especially during crises naturally called into question,” Schlegel said at a General Assembly meeting on Friday. Who knew the Swiss had such an allergy to volatility?

He continued with a bit of wisdom: “Cryptocurrencies also are known for their high volatility, which is a risk for long term value preservation.” Basically, Bitcoin is like a rollercoaster, and the SNB prefers a nice, calm ride—like a ride to the bakery for some croissants, not to an amusement park.

But here’s the twist: The Bitcoin Initiative, an ardent advocate of digital coins, made the case that adding Bitcoin could actually benefit Switzerland’s treasury. Turns out, a small amount of Bitcoin could’ve almost doubled the SNB’s returns since 2015. “Just imagine!” said the Bitcoin Initiative with a smirk, “A little extra something with nearly no extra headache!”

The Swiss National Bank, meanwhile, has only grown its investments by about 10% since 2015. If only they’d embraced the mystical world of Bitcoin, their returns could’ve almost doubled! The Bitcoin Initiative’s simulation tells a story of what could’ve been—more gains with a dash more risk. Who knew that a small 1% bet on Bitcoin could be such a game-changer?

But don’t panic, folks. Bitcoin isn’t as dangerous as some might think. “Bitcoin’s price reached new highs, it showed resilience under market stress, and it continues to be highly liquid,” says Luzius Meisser from the Bitcoin Initiative. He also mentions that even on public holidays, Bitcoin’s trading volume is still in the “double digit billions.” No need to worry about Bitcoin taking a day off!

Schlegel, however, wasn’t having it. He still didn’t want any part of the digital circus. Some say his stance may have more to do with politics than economics. After all, Bitcoin might ruffle some feathers between Switzerland and the European Union. The Bitcoin Initiative, in a cheeky email to CoinDesk, speculated that the SNB’s aversion to Bitcoin could be “political.” Who knew the Swiss were so politically cautious when it comes to digital currencies?

And if you think it’s just Switzerland, oh no. The European Central Bank President, Christine LaGarde, has long been unimpressed by Bitcoin. She’s called it “worth nothing” and a “highly speculative asset.” Sounds like a bad date. She’s even gone so far as to say that Bitcoin will never make it into any ECB reserves. But who needs ECB approval when you’ve got the charm of Bitcoin’s volatility?

Meanwhile, across the pond, U.S. President Donald Trump has signed an executive order to create a “strategic Bitcoin reserve.” Now that’s a bold move! But don’t worry, folks—he also made sure to put some strong rules in place to stop government agencies from messing with Central Bank Digital Currencies. Just in case anyone got any funny ideas.

Victor Chen contributed reporting. But who’s counting?

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2025-04-26 00:08