Swiss Bitcoin Advocates Launch Campaign to Include BTC in National Bank Reserves

Swiss Bitcoin advocates have initiated a campaign to persuade the Swiss National Bank (SNB) to include Bitcoin (BTC) in its national reserves. Led by the non-profit think tank 2B4CH, the movement aims to leverage Bitcoin’s potential as a strategic reserve asset, reflecting Switzerland’s progressive stance on financial innovation and digital currency adoption.

Campaign Overview and Objectives

The campaign, spearheaded by Yves Bennaïm, founder of 2B4CH, seeks to integrate Bitcoin into the SNB’s reserves to enhance Switzerland’s financial sovereignty and neutrality amidst global economic uncertainties. Bennaïm argues that Bitcoin’s decentralized nature and fixed supply make it an ideal addition to national reserves, providing a hedge against inflation and economic instability.

To achieve this goal, the campaign aims to gather 100,000 signatures from Swiss citizens to initiate a constitutional referendum. This process involves submitting necessary documents to the State Chancellery, with the target to secure sufficient public support within 18 months. The proposed amendment would incorporate Bitcoin into Article 99-3 of the Swiss Federal Constitution, which governs national reserves.

Historical Context and Previous Attempts

This isn’t the first time Swiss Bitcoin enthusiasts have pushed for Bitcoin’s inclusion in national reserves. An earlier attempt in October 2021 fell short of the required signatures. However, renewed interest and growing global acceptance of Bitcoin have revitalized efforts, with advocates hoping to capitalize on the current momentum in the digital asset space.

In March 2022, Luzius Meisser, a prominent figure in the Swiss crypto community, proposed that the SNB purchase $1.1 billion in Bitcoin monthly instead of German government bonds. Despite the proposal’s rejection, it highlighted the increasing consideration of Bitcoin as a viable reserve asset.

Strategic Significance and Financial Independence

Incorporating Bitcoin into national reserves is seen as a strategic move to bolster financial independence from traditional fiat currencies and centralized banking systems. Meisser, who leads Bitcoin Suisse, emphasizes that Bitcoin’s inclusion would affirm Switzerland’s independence from the European Central Bank, reinforcing its neutral stance in global finance.

Meisser plans to present the advantages of adding Bitcoin to the SNB’s assets in an upcoming meeting with the central bank, arguing that the move would enhance financial stability and provide significant long-term value. He believes that had the SNB adopted his recommendation in 2022, it would now benefit from substantial gains due to Bitcoin’s appreciation.

Global and Domestic Support

The initiative has garnered support from international figures, such as German politician and Bitcoin advocate Joana Cotar, who criticizes the European Union’s approach to digital currencies. Domestically, the campaign aligns with Switzerland’s role as a leading hub for blockchain and crypto innovation, exemplified by the growth of Crypto Valley.

In 2023, Crypto Valley’s top 50 entities doubled in value to $382.93 billion, showcasing the region’s robust blockchain ecosystem. Additionally, the city of Lugano’s decision to accept Bitcoin and other cryptocurrencies for tax payments underscores Switzerland’s progressive stance on digital assets.

Challenges and Prospects

Despite the enthusiasm, the campaign faces significant challenges, including regulatory hurdles and public skepticism. Ensuring widespread understanding of Bitcoin’s benefits and addressing concerns about its volatility and security are critical for gaining the necessary public support.

However, recent approvals of Bitcoin spot exchange-traded funds (ETFs) in the US and Hong Kong may influence the SNB’s stance on Bitcoin investment, providing a precedent for incorporating digital assets into national reserves.

Conclusion: A Vision for the Future

The campaign to include Bitcoin in the Swiss National Bank’s reserves represents a visionary approach to financial management, reflecting Switzerland’s commitment to innovation and independence. As the campaign progresses, its success could set a precedent for other nations to consider digital currencies as strategic reserve assets, paving the way for a more resilient and diversified global financial system.