Switzerland And Australia Are No Longer Interested In A Strategic Crypto Reserve
Despite US President Donald Trump’s recent announcement of a strategic crypto reserve involving Bitcoin, Ethereum, Ripple, Solana and Cardano, central banks in both Switzerland and Australia have dismissed the idea of incorporating crypto into their official reserves.
On 1 March 2025, Swiss National Bank (SNB) President Martin Schlegel rejected the proposal to hold part of its reserves in bitcoin, as proposed by a people’s initiative.
According to local reports, Schlegel said that cryptocurrencies do not fulfill the essential characteristics that a good currency should have.
BREAKING:
SWISS NATIONAL BANK REJECTS BITCOIN
SNB President Martin Schlegel says $BTC is too volatile and lacks the qualities of a good currency.
THEY’LL REGRET THIS! pic.twitter.com/axuNIFmF8x
— Crypto Rover (@rovercrc) March 1, 2025
Meanwhile, Australia’s current government has indicated that it doesn’t have plans to establish a crypto strategic reserve. However, the country is on the brink of choosing a new government. The latest YouGov poll shows the center-right coalition holding a slight lead over the center-left Labor government, leading 51% to 49%.
Australia Declares “No Plans for Strategic Crypto Reserve”… Focus on Regulation
The Australian government clarified that, unlike the Trump administration, it has no plans to establish a strategic crypto reserve. Instead, it is prioritizing regulatory framework development and… pic.twitter.com/OjsiSOoTX7
— Substance (@Bonzil_theroot) March 5, 2025
Crypto Volatility: A Major Reason For Not Including It In Reserves
Speaking to a media house, Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, said that while the idea for a reserve is popular, it can also be “fraught with complexity.” He added that if not managed properly, the reserve creates the potential for concentration risk with some tokens.
“Firstly, cryptocurrencies are extremely volatile,” SNB President said, “which is not conducive to maintaining the value of SNB investments in the long term.”
Schlegel continued, “Second, our reserves need to be highly liquid so that they can be used quickly for monetary policy purposes if needed. Third, cryptocurrencies display security weaknesses. They are essentially software, and we all know that software can have bugs and other weak points.”
Schlegel also described cryptocurrencies as a “niche phenomenon,” noting that their market capitalization remains relatively small compared to traditional financial systems.
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Switzerland Continues To push Forward With “Bitcoin Initiative”
Despite the SNB’s rejection, cryptocurrency advocates in Switzerland continue to push forward with the “Bitcoin Initiative.”
Launched in December 2024, this campaign seeks to amend Switzerland’s constitution to require the SNB to allocate part of its reserves to Bitcoin alongside gold.
Under Swiss law, the initiative committee has 18 months to collect 100,000 signatures for the proposal to be put to a vote. It remains uncertain whether the campaign will succeed.
Notably, in Switzerland, one in nine people reportedly invest in crypto assets—a statistic that reflects increasing mainstream acceptance.
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Key Takeaways
- While cryptocurrency advocates continue to push for broader adoption, central banks remain cautious, citing concerns over volatility, liquidity, and security.
- Despite the SNB’s rejection, cryptocurrency advocates in Switzerland continue to push forward with the “Bitcoin Initiative.”
The post Switzerland And Australia Are No Longer Interested In A Strategic Crypto Reserve appeared first on 99Bitcoins.
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2025-03-05 04:35:52
