The Swiss coalition of crypto advocates is campaigning by the Swiss National Bank (SNB) to diversify its foreign reserves by acquiring Bitcoin (BTC).
Reuters reported that the campaign was launched in December as a constitutional referendum initiative and aims to legally require SNB to hold Bitcoin along with gold as part of its foreign assets portfolio.
Supporters argue that Switzerland should adjust its preparation strategy to reflect a reduction in dependence on the US dollar and euro, reflecting the global transition to multipolarity.
Luzius Meiser, a board member of Bitcoin Switzer, and a central figure in the initiative, said Bitcoin’s monetary policy provides an alternative to the inflation resistance of Fiat currency.
According to Meisser:
“Politicians ultimately succumb to the temptation to print money to fund their plans, but Bitcoin is a currency that cannot be inflated by deficit spending.”
Meisser will present the rationale for the initiative directly to stakeholders at SNB’s annual meeting held at Bern this week.
The referendum process requires 100,000 verified signatures to proceed to a national vote. This is the first global initiative to require central banks to hold Bitcoin through constitutional reform.
This move occurs within sovereign wealth funds I’ll accumulate bitcoin in Aprilas reported by John Dagostino, Coinbase’s head of institutional sales.
Swiss cryptography adoption
Supporters of the referendum argued that allocating a modest portion of the SNB’s nearly $1 trillion Swiss Franc Franc Reserve portfolio to Bitcoin, particularly if allocated between 1% and 2%, would protect the bank from financial collapse without making it very big.
Meisser and others argue that SNB’s current foreign currency ownership, which consists of 75% of the US dollar and euro, exposes Switzerland to foreign political dynamics and devaluation risks driven by expanded fiscal policies overseas.
They also argue that such a move coincides with Switzerland’s broader positioning as a hub for blockchain technology.
Switzerland hosts “Crypto Valley” in Zug, a zone dedicated to the crypto industry. Additionally, the country ranked 55th out of 151 countries in the crypto index provided by Chainalysy’s latest “Geography of Crypto Report.”
Yvebennime, another supporter of the initiative and a member of the Bitcoin Initiative Group, countered concerns about security and liquidity.
He described Bitcoin’s fundamental technology as one of the safest and most resilient digital systems ever created, supported by a market capitalization of $2 trillion and daily trading volume.
Bennaim added:
“The global Bitcoin market is the most liquid and established among digital assets. I’m not saying that it’s all in it, but small allocations can hedge against financial and geopolitical risks.”
SNB should be aware of the momentum of the campaign
Despite the momentum of the campaign, the Swiss National Bank remains skeptical of Crypto.
In March, SNB Chairman Martin Schlegel repeated the agency’s reservations, citing high volatility in Bitcoin, limited liquidity in crisis scenarios, and technical vulnerabilities as factors currently included in official reserves.
He said:
“Cryptocurrency is essentially software, and we all know that software often has bugs and other vulnerabilities.”
Schlegel continued his reservations even after the Swiss federal prime minister. Approved By submitting a constitutional amendment proposal in December, we will require SNB to retain some of its Bitcoin reserves.
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