Summary
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Switzerland’s central bank (SNB) has formally opposed including Bitcoin in its national reserves, citing concerns about its stability, liquidity, and security, despite ongoing crypto advocacy.
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A citizens’ initiative led by the non-profit 2B4CH is actively seeking to amend the Swiss constitution to mandate the SNB hold Bitcoin alongside gold reserves, requiring 100,000 signatures for a referendum.
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While the SNB remains cautious, Switzerland continues as a crypto hub, and the separate trend of tokenizing real-world assets (like U.S. Treasuries) is rapidly expanding, indicating deeper integration of digital assets into finance, although concerns about centralization exist.
Switzerland’s central bank, the Swiss National Bank (SNB), has reaffirmed its position against adding Bitcoin to the nation’s official reserves.
Citing fundamental issues related to stability and market liquidity, SNB Chairman Martin Schlegel indicated that cryptocurrencies currently do not satisfy the essential requirements demanded of foreign exchange reserve assets.
This declaration was made during a shareholders’ gathering in Bern.
SNB Rejects Bitcoin for Reserves Citing Stability Concerns
Despite the SNB’s firm stance, optimism persists within Switzerland’s substantial cryptocurrency sector, with many businesses anticipating eventual official recognition for digital assets.
Schlegel’s recent comments are consistent with his earlier statements; in March, he explicitly expressed reluctance towards designating Bitcoin as a reserve asset, pointing to its price volatility, challenges in ensuring sufficient liquidity, and potential security hazards.
Constitutional Amendment Proposed for Bitcoin Holdings
Contrasting the SNB’s caution, a formal initiative is underway seeking to amend Switzerland’s constitution.
Launched toward the end of 2024 through the Swiss Federal Chancellery, the proposal aims to legally obligate the SNB to hold Bitcoin reserves.
To bring this matter to a national vote via referendum, proponents must secure 100,000 verified signatures.
The proposed constitutional change targets Article 99, paragraph 3, which currently mandates the SNB create adequate currency reserves from its income, with a portion explicitly allocated to gold.
Should the initiative be successful, we would amend the text to incorporate the phrase “and in Bitcoin.”
Spearheading this effort is the Swiss non-profit 2B4CH, which handled the preparation and submission of the required documentation.
The group enjoys support from prominent figures within the crypto industry, notably Jeev Zangana, Vice President of Tether, the company behind the major stablecoin USDT.
Arguments Favoring Bitcoin Inclusion in Reserves
Further supporting the inclusion of Bitcoin, Lusius Meisser, a board member at Bitcoin Suisse, suggests that holding the cryptocurrency is increasingly logical in a global landscape shifting toward a multipolar financial system.
He emphasized the timeliness of such a move, particularly as traditional reserve currencies like the US dollar and the euro exhibit signs of depreciation.
Meisser posits that Bitcoin offers insulation from the political pressures associated with foreign currencies, which dominate the SNB’s current reserves.
He highlighted Bitcoin’s inherent scarcity, preventing its value dilution through printing—a tool politicians may exploit to finance policy goals.
Switzerland’s Enduring Role as a Crypto Hub
Switzerland continues to be a significant global center for cryptocurrency innovation.
The canton of Zug, for instance, played a foundational role in the development of Ethereum, the second-largest cryptocurrency by market capitalization.
The nation remains fertile ground for new crypto-related ventures, illustrated by recent news of the international grocery chain Spar beginning to accept Bitcoin payments in one Swiss locality.
Parallel Developments: Concentration in Tokenized Real-World Assets
Meanwhile, the market for tokenizing real-world assets (RWAs) is rapidly expanding, though currently characterized by significant concentration.
Data from RWA.xyz, a platform monitoring this sector, reveals that just six institutions dominate the landscape, controlling 88% of all tokenized U.S. Treasuries.
Since the beginning of 2024, consolidation trends have been evident among these leading funds.
Analyst observations indicate that BUIDL experienced explosive growth, with its capitalization surging 291% between January 1st and April 24th, capturing 41.1% of the entire tokenized U.S. Treasury market.
Only Circle’s USYC reportedly saw a decline among the top six during this period.
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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