Swiss Referendum Aims to Make Bitcoin a Reserve Asset for National Bank

Swiss crypto evangelist Yves Bennaïm leads an initiative to amend the Swiss constitution, seeking to add Bitcoin to the Swiss National Bank's (SNB) reserve assets. The proposal, if approved, would oblige the SNB to hold Bitcoin alongside gold, acknowledging the growing influence of cryptocurrencies in modern finance.

Swiss National Referendum Seeks to Establish Bitcoin as Reserve Asset for Swiss National Bank

Zurich, Switzerland - April 21, 2024 - A groundbreaking initiative by French-speaking Swiss crypto evangelist Yves Bennaïm has sparked a nationwide debate in Switzerland. The proposal, backed by a growing coalition of Bitcoin enthusiasts, seeks to amend the country's constitution to mandate the Swiss National Bank (SNB) to include Bitcoin as a reserve asset.

Constitutional Amendment Process

Switzerland's deep-rooted democratic values are enshrined in its constitution, which can be amended through a national referendum. This empowering mechanism allows Swiss citizens to directly influence their national legislation by gathering at least 100,000 valid signatures from Swiss citizens.

Proposed Amendment

Bennaïm's proposal seeks to revise Article 99 of the Swiss constitution, which currently mandates the SNB to hold "sufficient currency reserves from its income; part of these reserves is held in gold." The amendment aims to expand this mandate to include Bitcoin, revising the text to state: "in gold and Bitcoin."

Drivers of the Proposal

The proposal reflects a global trend of integrating cryptocurrencies into financial portfolios. Bitcoin, the world's leading cryptocurrency, offers high liquidity and freedom from geopolitical influences, making it an attractive addition to the conservative portfolios typically held by national banks.

Potential Benefits

Supporters of the amendment argue that including Bitcoin in the SNB's balance sheet would diversify the bank's reserves and signal Switzerland's commitment to leading in financial technology and digital currencies. They also contend that proper management and regulatory frameworks can mitigate risks associated with Bitcoin's volatility.

Concerns and Counterarguments

Critics raise concerns about Bitcoin's volatility and its potential impact on national financial security. They argue that Bitcoin's price fluctuations could threaten the fiscal stability required of central banks. However, supporters counter that the SNB has a long history of managing financial risks and that including Bitcoin would enhance the stability of the bank's reserves.

Public Response and Path Forward

The proposal has garnered significant attention from the Swiss public and financial industry. The initiative is currently collecting signatures, aiming to reach the 100,000 requirement by the end of the year. If successful, the proposal will be submitted for a national referendum, giving Swiss citizens the opportunity to vote on amending the constitution.

Significance for the Bitcoin Community

This initiative marks a significant milestone for the Bitcoin community. It demonstrates the growing influence of cryptocurrencies in global finance and highlights the recognition of Bitcoin as a legitimate financial asset by a respected financial institution such as the Swiss National Bank. The outcome of the referendum will have far-reaching implications for the future of Bitcoin and its adoption as a reserve asset.