The SNB rejected proposals to add Bitcoin to its national reserves, citing stability concerns.
Crypto advocates are pursuing constitutional changes to require the central bank to hold Bitcoin alongside gold.
SNB Chairman Martin Schlegel confirmed the bank’s stance at a shareholders’ meeting in Bern.
He stated that cryptocurrencies currently do not meet the requirements for foreign exchange reserves.
In March, he made comments that highlighted the stability and security risks associated with making Bitcoin a reserve asset.
Despite the SNB’s position, many local crypto firms remain hopeful for future official recognition of digital assets.
Constitutional Amendment Proposed for Bitcoin Holdings
Meanwhile, proponents initiated a proposal via the Swiss Federal Chancellery in late 2024 seeking a constitutional amendment.
This change would compel the SNB to hold Bitcoin as part of its reserves, modifying Article 99, paragraph 3, which currently only specifies gold.
Initiators must gather 100,000 signatures to force a national referendum on the issue.
The non-profit group 2B4CH developed and filed the necessary documents for the initiative.
The group receives support from industry figures, including Jeev Zangana, vice president of Tether.
2B4CH founder Yves Bennaim clarified they advocate for a small allocation (1-2%) of the SNB’s nearly 1 trillion franc reserves to Bitcoin, based on its potential growth and security.
Arguments Supporting Bitcoin Inclusion
Arguments supporting the proposal include Bitcoin’s potential utility in a diversifying global financial system, particularly if the dollar and euro weaken, as noted by Bitcoin Suisse board member Lusius Meisser.
He also suggested Bitcoin’s scarcity protects against value dilution through money printing, unlike government-issued currencies, and could insulate the bank from political influences tied to fiat currency reserves.
SNB’s Ongoing Role as Crypto Hub
Switzerland continues to be a significant location for the crypto industry, historically important for projects like Ethereum and currently seeing initiatives such as the Spar grocery chain accepting Bitcoin payments in one city.
Concentration in Tokenized Asset Market
Separately, the market for tokenizing real-world assets (RWAs), like U.S. Treasuries, is expanding rapidly but shows high concentration.
According to RWA.xyz data, six institutions control 88% of the tokenized U.S. Treasury market.
BlackRock leads with its BUIDL fund ($2.5 billion market cap), followed by firms like Franklin Templeton, Superstate, Ondo, and Circle.
BlackRock’s BUIDL fund saw its market cap increase by 291% between January 1 and April 24, 2024, capturing over 41% of the market share.
Tokenization Growth and Associated Risks
Industry observers, like MEXC COO Tracey Jin, note risks associated with this centralization.
Particularly the potential for government control or asset seizure on semi-centralized blockchains and the reliance on national legal systems.
The RWA tokenization sector expects further growth, supported by increasing regulatory clarity, interoperability, and developments in digital identity and fractional ownership.
The market reached a total capitalization of $21.3 billion on April 21.
Also Read: Swiss Bitcoin Advocates Submit a Petition Demanding the National Bank Maintain Bitcoin Reserves
