Switzerland Proposes Bitcoin as National Reserve Asset

The Swiss Chancellery has launched an initiative to include Bitcoin in Switzerland’s national reserves. Supported by a group of crypto advocates, the campaign seeks to amend Article 99 of the Swiss Federal Constitution, enabling the Swiss National Bank (SNB) to hold Bitcoin alongside gold.

The proposal was officially registered on December 31, 2024, and requires 100,000 signatures—about 1.12% of Switzerland’s population—to move forward. If successful, it will be presented to the Swiss Federal Assembly for deliberation.

Leading the Campaign

Prominent figures backing the initiative include:

• Giw Zanganeh, Tether’s Vice President of Energy and Mining
• Yves Bennaïm, founder of Swiss think tank 2B4CH

The amendment proposes that the SNB accumulate Bitcoin from its profits, treating it as a strategic asset alongside gold.

Switzerland’s Crypto-Friendly Landscape

Switzerland has long been a leader in cryptocurrency adoption:

• Lugano allows Bitcoin for tax payments and hosts the annual Plan ₿ Conference.
• Zug’s Crypto Valley is home to over 1,200 blockchain companies, including 13 unicorns valued at over $1 billion.

Despite this progressive stance, hurdles remain. SNB Chairman Martin Schlegel has expressed concerns over Bitcoin’s volatility and energy consumption, while Switzerland’s Financial Market Supervisory Authority (FINMA) has flagged potential money laundering risks.

Bitcoin’s Global Momentum

Switzerland’s proposal aligns with a broader trend of nations exploring Bitcoin as part of their financial strategies:

• United States: Approved spot Bitcoin ETFs in 2024, with President-elect Donald Trump endorsing Bitcoin.
• Brazil: Proposed allocating 5% of foreign reserves into Bitcoin.
• Poland and Bhutan: Have added Bitcoin to their financial assets.
• El Salvador: Continues to lead with 6,000+ BTC in reserves.

Even Russia is embracing cryptocurrency, using Bitcoin in foreign trade transactions.

Challenges and Implications

As Bitcoin gains traction, its role in national fiscal policies raises complex questions:

• Volatility: Concerns over price stability impact its appeal as a reserve asset.
• Regulatory Hurdles: Countries like Switzerland and the U.S. grapple with anti-money laundering and energy consumption issues.
• Geopolitical Dynamics: Bitcoin adoption may reduce reliance on traditional currencies like the U.S. dollar, potentially weakening the effectiveness of economic sanctions.

Switzerland’s proposal to add Bitcoin to its national reserves represents a significant step toward broader adoption. If successful, it would solidify Switzerland’s status as a leader in crypto innovation while setting a precedent for other nations. As global interest in Bitcoin grows, the world watches to see how traditional financial systems adapt to this digital transformation.