Swiss National Bank Explicitly Refuses to Include Bitcoin as Reserve Asset

On March 3rd, according to the report from FinanceFeeds, the Swiss National Bank (SNB) has explicitly stated that it will not regard Bitcoin as a reserve asset. The reason given is the concern over the stability of this cryptocurrency. This decision has delivered a substantial setback to the hope that Bitcoin would become a recognized reserve asset. The Swiss central bank adopts a cautious attitude towards Bitcoin mainly because of its high price volatility and rapid changes. For instance, in 2022, Bitcoin witnessed a 17.5% plunge within a single day. In contrast, traditional reserve investments like gold and foreign exchange have demonstrated more stable performance over the long term. That is why central banks around the world have a preference for these assets. This rejection emphasizes the challenge that cryptocurrencies encounter in gaining recognition from the global mainstream banking system. While some countries and companies are integrating digital assets into their reserves, Bitcoin is still primarily regarded as a speculative investment rather than a fundamental financial tool. Nevertheless, this decision may not impede the long-term growth of Bitcoin as private adoption and other financial systems continue to develop.