Cryptocurrency campaigners aiming to compel the Swiss National Bank (SNB) to hold Bitcoin in its reserves are abandoning their initiative after failing to gather sufficient signatures to trigger a national referendum. Authorities had granted the “Bitcoin Initiative” 18 months to make a constitutional case for the central bank to store Bitcoin alongside its gold and foreign currency reserves. However, with only weeks remaining, the group confirmed it had secured only about half of the 100,000 signatures required under Swiss law.
“We knew from the beginning that it was a long shot,” campaign founder Yves Bennaim told Reuters, stating the initiative would now lapse, though he noted progress towards a long-term goal. The Swiss National Bank, which is the central bank of Switzerland responsible for price stability and managing currency reserves, has consistently rejected the notion of holding cryptocurrencies. It cites extreme price volatility and insufficient market liquidity. “Cryptocurrencies do not meet the SNB’s currency reserve requirements,” the central bank previously stated, referencing rules demanding adaptability and value preservation for its reserves. The SNB offered no comment on the initiative’s failure.
While some central banks, like the Czech National Bank, have experimented by acquiring $1 million in cryptocurrencies for learning purposes, others such as the European Central Bank remain sceptical, prioritising “liquid, secure and safe” reserves. The recent downturn in Bitcoin’s price has underscored digital asset vulnerability, prompting a shift towards safer investments amidst global economic uncertainty. Bennaim countered that Bitcoin, despite recent losses, is not illiquid, citing tens of billions in daily transactions. He added the initiative sought to encourage the SNB to examine a technology impacting global finance, arguing Bitcoin could diversify risk from dominant dollar- and euro-denominated assets.
