The idea of incorporating Bitcoin into Switzerland’s national reserves has been discussed by the government. A major step towards integrating the digital asset into the nation’s financial system was taken when the idea was formally registered by the Swiss Chancellery.
A Courageous Idea Supported by Crypto Experts
The initiative is being led by a group of ten Swiss cryptocurrency aficionados, including well-known individuals like Yves Bennaïm, founder of think tank 2B4CH, and Giw Zanganeh, vice president of energy and mining at Tether. The Swiss National Bank (SNB) would have to include Bitcoin in its monetary reserves along with gold under the proposed constitutional amendment. The initiative must receive 100,000 signatures in 18 months, or 1.12% of Switzerland’s 8.9 million residents, in order to proceed.
Aiming for Constitutional Reform
The initiative, titled “For a financially sound, sovereign and responsible Switzerland,” aims to change Article 99, Paragraph 3 of the Federal Constitution of Switzerland. “The National Bank accumulates adequate monetary reserves from its own earnings; part of these reserves are made up of gold and Bitcoin,” the proposed addition states.
Gaining Knowledge from the Past
The attempt to incorporate Bitcoin into Switzerland’s financial reserves is not new. Due to a lack of institutional and public backing, a similar plan spearheaded by 2B4CH in 2021 was put on hold. This time, though, the organisers have adopted a more methodical strategy, setting the foundation since April 2024 to guarantee the proposal’s success.
Financial Authorities’ Caution
The Swiss National Bank and other financial regulators are still wary of cryptocurrencies despite their increasing popularity. Martin Schlegel, the chairman of the SNB, expressed worries about Bitcoin’s energy usage, volatility, and possible connections to illegal activity. In a similar vein, the Financial Market Supervisory Authority of Switzerland has voiced concerns on the potential for money laundering linked to virtual currencies.
Adoption of Crypto in Switzerland: An Overview from the Ground Up
Higher levels of scepticism notwithstanding, the acceptance of cryptocurrency at the grassroots level in Switzerland is rather different. For example, the city of Lugano hosts the yearly “Plan ₿” Bitcoin conference and has accepted Bitcoin for tax payments since December 2023. Furthermore, with over 1,200 blockchain-focused businesses, including 13 unicorns with a combined valuation of over $1 billion, Switzerland’s Crypto Valley, situated in Zug, has emerged as a major worldwide blockchain hub.
This most recent initiative, which reflects the nation’s changing position on digital assets, may signal a sea change in the role of Bitcoin in national financial policies.
