Will SNB become the first Western central bank to hold Bitcoin reserves?

Switzerland’s central bank is urged by a group of Bitcoin supporters to include Bitcoin in its strategic reserves. A campaign to persuade the Swiss National Bank (SNB) to include Bitcoin in its balance sheet has been started by a group of proponents of the cryptocurrency in Switzerland.

The nonprofit group wants to change Switzerland’s constitution so that the central bank is compelled to hold Bitcoin through a nationwide ballot. The organization claimed that in an unpredictable international context, this action will assist Switzerland in preserving its political neutrality and sovereignty. Advocates are currently finishing up the committee’s organizational setup and drafting the paperwork that needs to be sent to the State Chancellery to get things started.

Under Switzerland’s direct democracy system, proponents need to gather 100,000 signatures from Swiss nationals in less than 18 months in order to hold a referendum. With 8.77 million people living in Switzerland, almost 1.15% of the population must sign the petition. There were difficulties with this signature requirement when 2B4CH tried to hold a similar vote in 2021.

Switzerland would declare its independence from the European Central Bank by putting Bitcoin in its reserves. Neutrality would be strengthened by such a move. Switzerland might gain billions from adopting Bitcoin, and the SNB had earlier counselled to devote more than $1 billion per month to BTC rather than German bonds.

Thomas Jordan, the chair of the SNB, has resisted thus far, arguing that Bitcoin does not satisfy the reserve requirements. Global supporters of Bitcoin have endorsed the initiative. The popular attempt to force the National Bank to purchase Bitcoin is now underway. Switzerland might become the first nation in the West to retain reserves of Bitcoin if the effort is successful. This is similar to how Bitcoin was first accepted as legal money in El Salvador in 2021. Integrating Bitcoin, according to supporters, would diversify the SNB’s holdings and demonstrate Switzerland’s dedication to financial innovation.