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Cryptocurrency campaigners in Switzerland are making waves with a proposal to have the Swiss National Bank (SNB) hold Bitcoin in its reserves. This move comes amid global economic instability and concerns over the long-term stability of traditional currencies. Here’s a breakdown of the situation:
1. The Push for Bitcoin Reserves
In December, cryptocurrency advocates launched a referendum campaign to amend the Swiss constitution, requiring the SNB to hold Bitcoin alongside its traditional reserves like gold. Campaigners believe that diversifying the bank’s reserves with Bitcoin would shield Switzerland from the volatility of traditional fiat currencies.
2. The Case for Bitcoin
Luzius Meisser, a campaigner and board member of Bitcoin Suisse, argues that as the global economic landscape shifts and major currencies like the dollar and euro weaken, holding Bitcoin makes sense. He points out that Bitcoin, unlike traditional currencies, cannot be inflated by deficit spending, making it a more secure option in uncertain times.
3. Switzerland’s Crypto Landscape
Switzerland has become a global leader in blockchain and cryptocurrency innovation, with Ethereum being founded in Zug, famously known as “Crypto Valley.” The country has a growing interest in crypto, with 11% of the population investing in digital assets, according to a study by Lucerne University of Applied Sciences and Arts.
4. SNB’s Concerns
However, the Swiss National Bank remains cautious. Despite Switzerland’s strong position in the crypto world, the SNB has expressed concerns over Bitcoin’s volatility, security risks, and liquidity. The bank currently holds no Bitcoin in its reserves, with SNB Chairman Martin Schlegel citing potential vulnerabilities in the software that underpins cryptocurrencies.
5. The Bitcoin Technology Advantage
Organizers of the Bitcoin Initiative, such as Yves Bennaim and Luzius Meisser, emphasize that Bitcoin’s technology is one of the most secure and reliable IT systems available, continuously improving over time. With a market capitalization nearing $2 trillion, Bitcoin remains the most liquid and stable digital asset, with billions traded daily.
6. A Balanced Approach
While campaigners aren’t advocating for a total shift to Bitcoin, they argue that it makes sense for the SNB to allocate a small percentage of its nearly 1 trillion francs in reserves to Bitcoin. A 1-2% allocation to an asset that is increasing in value and security would be a forward-thinking approach, they say.
Conclusion
The call for the Swiss National Bank to hold Bitcoin reflects a growing belief in the cryptocurrency’s value as a safe, secure, and increasingly mainstream asset. As Switzerland continues to lead in blockchain innovation, this movement may spark further discussions on the role of digital assets in national reserves.
This article reflects the opinions of the publisher based on available information at the time of writing. It is not intended to provide financial advice, and it does not necessarily represent the views of the news site or its affiliates. Readers are encouraged to conduct further research or consult with a financial advisor before making any investment decisions.
