Swiss National Bank (SNB) Governor Martin Schlegel has reiterated the institution’s firm stance against incorporating Bitcoin or other digital assets into its foreign exchange reserves. Schlegel raised concerns about the high volatility, instability, and regulatory challenges associated with cryptocurrencies, explaining why these assets do not align with the SNB’s financial objectives.

Why the Swiss National Bank Rejects Bitcoin

Speaking to Bloomberg, Schlegel noted that the SNB’s reserves are primarily designed to support monetary policy. He emphasized that digital assets, such as Bitcoin, do not meet these requirements due to their unpredictable price movements and lack of stability. These characteristics make cryptocurrencies unsuitable for use in the central bank’s reserve strategy.

This perspective mirrors Schlegel’s earlier comments from a November 2024 event, where he expressed skepticism about the use of cryptocurrencies like Bitcoin and Ethereum. He described them as niche financial instruments that are impractical for payment purposes because of their significant value fluctuations.

Additional Concerns About Cryptocurrencies

Schlegel also voiced apprehension about the environmental impact of cryptocurrency mining, noting the high energy consumption required for operations. Furthermore, he highlighted the association of cryptocurrencies with illegal activities, which complicates regulatory oversight and enforcement.

Switzerland’s Blockchain Innovation Continues

While the SNB remains cautious about digital assets, Switzerland has solidified its reputation as a leading hub for blockchain innovation. Recent developments demonstrate the country’s proactive approach to leveraging blockchain technology while maintaining strict regulatory standards.

Blockchain-Based Trading System Gains Approval

The Swiss subsidiary of the Stuttgart Stock Exchange, BX Digital, recently secured approval from the Swiss Financial Market Supervisory Authority to operate a blockchain-based trading platform. This innovative system utilizes Ethereum-based technology to enable direct settlement and transfer of assets, eliminating intermediaries and reducing both transaction times and costs.

Nexo Expands Its Crypto Card Services

In another significant development, Nexo has expanded its Nexo Card services to Switzerland and Andorra. As part of the company’s 2025 Growth Plan, the card combines debit and credit functions, offering users greater flexibility in managing their finances. The card has already achieved a 62% adoption rate among eligible users in the European Economic Area, reflecting its growing popularity.

These advancements highlight Switzerland’s commitment to fostering blockchain innovation while maintaining a cautious approach to the adoption of volatile digital assets like Bitcoin. The country continues to balance innovation with regulatory prudence, ensuring that its financial ecosystem remains both cutting-edge and secure for investors.

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