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Swiss National Bank President Spoke About Bitcoin (BTC)! Responded to the Idea of BTC Reserve!
Martin Schlegel, President of the Swiss National Bank (SNB), rejected the idea of holding some of the central bank's reserves in Bitcoin, arguing that cryptocurrencies do not meet the fundamental characteristics of a reliable currency.
His comments in an interview with the Tamedia newspaper group came amid a broader discussion in Switzerland about the potential role of Bitcoin in the country's monetary policy.
Schlegel stated that cryptocurrencies are extremely volatile and therefore not suitable for long-term reserve management. 'Our reserves need to have high liquidity so that they can be quickly used for monetary policy purposes when needed,' he said.
He also highlighted the security risks related to digital assets. Schlegel said, “Cryptocurrencies are essentially software, and we all know that software can have bugs and other vulnerabilities.”
Despite the SNB's reservations, a grassroots initiative is pushing for Bitcoin to be made a part of the central bank's reserves. The 'Financially Strong, Sovereign and Responsible Switzerland Bitcoin Initiative', launched in December, aims to collect 100,000 signatures within 18 months to submit the proposal to a national vote.
The initiative calls for the SNB to hold some of its reserves in Bitcoin and gold, requiring a constitutional amendment. However, the proposal does not specify the exact amount of Bitcoin to be included.
Schlegel underestimated the importance of cryptocurrencies in the global financial system and described them as a "niche phenomenon." He also reaffirmed his confidence in the stability of the Swiss Franc by rejecting concerns about digital assets competing with traditional currencies.