The Swiss National Bank (SNB) has dismissed the idea of adding Bitcoin to its reserves.

According to SNB President Martin Schlegel, the central bank has no inclination to hold the cryptocurrency due to its excessive volatility and risk.

The Swiss National Bank (SNB) has no immediate plans to add Bitcoin to its reserves, President Martin Schlegel said on Wednesday, rejecting a proposal by a Swiss nonprofit to include the cryptocurrency in the bank’s asset holdings.

The SNB chief’s comments come in response to an initiative by 2B4CH, a nonprofit think tank that aims to integrate Bitcoin into Switzerland’s reserves. The group is planning to submit a constitutional amendment for inclusion in the upcoming national elections.

However, Schlegel expressed skepticism towards the proposal, highlighting concerns over Bitcoin’s extreme volatility and susceptibility to security risks. He explained that cryptocurrencies do not meet the SNB’s criteria for stable and liquid assets, which are essential for monetary policy.

“The cryptocurrencies that are circulating today are fundamentally unsuitable for use as national reserves,” Schlegel stated.

His remarks focused on Bitcoin’s rapid price swings, which have seen the cryptocurrency rise to new highs and then decline sharply in recent years. While these fluctuations can create investment opportunities, they pose a challenge for central banks, who typically prefer to invest in assets with more predictable value.

Moreover, Schlegel pointed out the technical risks associated with Bitcoin’s software-based nature, rendering it vulnerable to bugs and hacking attempts. He emphasized that these vulnerabilities make it unsuitable for a central bank, which must prioritize the security of its asset holdings.

“A central bank needs to be able to hold its assets durably and to be sure that they are not threatened by technical risks such as software bugs or attempts at hacking,” he added.

The SNB president’s comments come as some in Switzerland are pushing for the inclusion of Bitcoin in the country’s reserves.

In another development, crypto exchange Bybit has suffered a massive hack, leading to the theft of $1.5 billion, according to reports by blockchain security firm PeckShield and local media.

This incident is being described as the largest crypto hack of all time, surpassing the 2023 hack of STEPN, which saw the theft of $800 million.

The stolen funds include 234,000 ETH, 183,000 BTC, and other tokens, valued at over $1 billion. The remaining amount is covered by stablecoins and other tokens.

According to a report by the Korea Economic Daily, hackers exploited a technical vulnerability in Bybit’s smart contract to siphon off the digital assets.

The report also mentions that Bybit is currently working to recover the stolen cryptocurrency.

Recently, a group of U.S. lawmakers introduced bipartisan legislation that would create a framework for regulating stablecoins and impose penalties on those who carry out illicit financial activities in Web3.

The bipartisan Stablecoin and Digital Currency Act would delegate the regulation of stablecoins to the Federal Reserve, aiming to promote innovation while ensuring financial stability.

The bill would also establish a regulatory framework for digital assets, taking into account the unique characteristics of these assets and the rapidly evolving technological landscape.

In addition, the legislation would impose penalties on those who use digital assets for criminal activities, such as narcotics trafficking and terrorism.

The legislation is co-led by House Financial Services Committee Chair Maxine Waters (D-CA) and Ranking Member Bill McHenry (R-NC). It builds upon previous legislation, such as the bipartisan Stablecoin Discussion Draft and the Digital Dollar: A Framework for Common Good Technology.

“This legislation will create a regulatory framework that fosters innovation, protects consumers, and upholds the integrity of our financial system,” said Chair Maxine Waters.

“This bill is a product of bipartisan cooperation and a year-long effort to develop legislation that can quickly and efficiently move through Congress.”

The bill's introduction follows the collapse of FTX, which sparked a renewed urgency among lawmakers to regulate the cryptocurrency industry.

The Senate Banking Committee is also working on its own bipartisan legislation, known as the "Responsible Financial Innovation Act," which is being led by Senators Tim Scott (R-SC) and Mark Warner (D-VA).

The House Energy and Commerce Committee is currently examining legislation that would grant the Securities and Exchange Commission (SEC) the authority to regulate the registration of tokens that are not securities.

In other news, the price of Bitcoin fell on Wednesday, extending declines from the previous session as traders assessed the latest economic data and awaited an upcoming report on consumer prices.

By 07:08 ET (11:08 GMT), Bitcoin dropped 1.3% to $66,180. The cryptocurrency had slid 2.4% in the previous session, marking its worst single-day decline in over three weeks.

Bitcoin is now trading about 10% below the 2023 highs of around $73,000, which it reached in March.

The cryptocurrency has faced headwinds in recent weeks as major crypto exchange FTX went bankrupt and its former CEO, Sam Bankman-Fried, was arrested and charged with multiple crimes, including