A campaign to force the Swiss National Bank to add Bitcoin to its reserves is set to end after supporters were unable to collect enough signatures for a referendum under Switzerland’s constitutional provisions, despite months of advocacy and public campaigning.
Campaigners have been given 18 months to gather 100,000 valid signatures to propose a constitutional amendment that would require central banks to hold Bitcoin alongside gold and foreign exchange reserves. However, as the deadline approached, the Bitcoin Initiative announced that it had secured only about half of the required amount.
Massive setback in reserve campaign
In a statement to Reuters, campaign founder Yves Benaim acknowledged that the initiative faced difficult prospects from the beginning and said the initiative would now be allowed to expire.
Despite the setbacks, he noted that the campaign helped advance the discussion on the role of cryptocurrencies in the financial system. The SNB has consistently opposed the idea of holding cryptocurrencies as reserves, with the main arguments being that digital assets remain highly volatile and lack the market liquidity needed to manage reserves.
The central bank also insisted that reserve assets must be able to expand or contract balance sheets quickly as needed, while maintaining long-term value. Some central banks are considering exposure to digital assets, but their approaches vary widely.
The Czech National Bank, for example, purchased about $1 million worth of cryptocurrencies and blockchain-related assets last year as part of its efforts to better understand digital markets. Meanwhile, the European Central Bank (ECB) remained cautious, stressing the need for reserve assets to remain safe and liquid.
Last month, Taiwanese lawmaker Dr. Ko Chu-chun proposed adding Bitcoin to the national reserve fund at a Legislative Yuan meeting attended by senior officials. The proposal cited concerns about Taiwan’s heavy reliance on U.S. dollar foreign exchange reserves and suggested that Bitcoin could act as a strategic hedge, despite the central bank’s previous concerns about volatility and custody risks.
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zoom out
The debate over Bitcoin reserves comes as the market continues to face volatility. $BTC After briefly hitting multi-month highs earlier this week, it recently fell below $80,000. The asset is currently down more than 36% from its all-time high hit last year.
Meanwhile, geopolitical tensions have heightened market caution following contradictory reports claiming that Iran attacked a US naval ship in the Strait of Hormuz.
