Bitcoin is unsuitable for inclusion in state reserves due to its lack of stability, liquidity, and security, according to Swiss National Bank (SNB) Governor Martin Schlegel, as reported by Swissinfo.

Schlegel explained that high volatility makes digital assets unreliable for long-term value storage.

He emphasized that reserves must be immediately accessible to support monetary policy operations.

The SNB chief also highlighted vulnerabilities in cryptocurrency software, warning about the potential for coding errors.

His statement comes amid an initiative seeking a constitutional amendment to require the SNB to hold Bitcoin alongside gold in its reserves.

The proposal was launched by entrepreneur Yves Bennaïm, who began collecting signatures in December 2024. To bring the issue to a national referendum, 100,000 signatures must be gathered within 18 months.

Despite Switzerland’s growing interest in cryptocurrencies and their increased adoption in the banking sector, Schlegel called Bitcoin a “niche phenomenon.” He reaffirmed that the Swiss franc remains a reliable currency and faces no competition from digital assets.

On February 21, Swiss bank PostFinance launched a cryptocurrency trading service.