Several Swiss-based Bitcoin enthusiasts are launching a renewed effort to persuade the Swiss National Bank (SNB) to include bitcoin in its reserves. This initiative, which commenced in October 2021, involves holding a referendum to amend the country’s constitution, but it requires more than 100,000 signatures from locals to move forward.
In an exclusive interview with BitcoinNews, Yves Bennaïm, founder and chairman of 2B4CH, a nonprofit think tank leading the charge, shed light on the endeavor and its implications.
Initiative Amid Regulatory Stability
Bennaïm addressed concerns over regulatory uncertainties surrounding Bitcoin, stating, “There are no “real regulatory uncertainties” in Switzerland.” He highlighted Switzerland’s progressive stance towards Bitcoin, emphasizing its legality, taxation, and adoption by regulated banks and service providers. The 2B4CH founder stated:
“On the international level, since the BlackRock ETF earlier this year, I think it is reasonable to expect Bitcoin to stay accessible in Wall Street for the foreseeable future. And in the EU Mica law is starting to offer even more regulatory stability for the whole Union. Why would Bitcoin be more of a risk for the SNB, than for example Tesla or Nvidia stock (which it does currently hold)?”
When questioned about the potential risks of integrating bitcoin into the SNB’s reserves compared to traditional assets like stocks, Bennaïm argued for Bitcoin’s potential as a hedge against economic instability. He pointed out the risks associated with the SNB’s current investment choices and highlighted Bitcoin’s performance as a promising investment option.
Swiss National Bank Should Diversify: Bennaïm
Bennaïm sees multiple benefits of incorporating bitcoin into the SNB’s reserves, emphasizing the potential for diversification and long-term growth. He stated:
“Currently, the SNB invests in a variety of assets, including US Treasury bonds and USD-denominated Nasdaq stocks. Knowing how the US debt and interests are getting very unsustainable, and how dependent on continuous war the US economy is becoming, I believe it is not the best situation for the SNB to conduct its mandate.
He envisioned Switzerland taking a leading role in embracing Bitcoin, akin to embracing the internet in the late 1990s, with minimal risks and significant opportunities for economic advancement.
“Moreover, Bitcoin has proven to be one of the best performing assets in the last 15 years, and to put it very pragmatically: if it is a good investment for BlackRock and Wall Street, it is a good investment for the SNB. At least at an equal level as gold, which happens to be ~6% of the reserves,” Bennaïm explained.
Challenges Ahead
However, the road ahead is challenging. To trigger a referendum, the initiative needs to gather over 100,000 signatures from Swiss nationals within 18 months. Bennaïm acknowledged this challenge, highlighting that it’s not just about achieving the target but also about fostering a national dialogue and understanding of Bitcoin’s potential.
The founder highlighted Switzerland’s unique position due to its banking and tech culture. He also acknowledged the challenges of embracing change but also expressed optimism about the opportunities Bitcoin presents.
Responding to critics who point out Bitcoin’s price volatility and dismiss its intrinsic value, Bennaïm argued against the concept of intrinsic value in modern currencies. He defended Bitcoin’s long-term investment potential, citing its performance over the past decade.
Timeframe for Gathering 100K Signatures
Regarding the timeframe for gathering signatures, Bennaïm admitted uncertainty, emphasizing that the initiative is more about sparking a national conversation than achieving a specific target. He views the initiative as the cherry on top as he expresses confidence that the SNB will eventually hold bitcoin in its reserves. He states:
“I am certain the SNB would be holding bitcoin in their treasury before the end of the initiative anyway, so we are offering them a little nudge in the right direction to accelerate their decision.”
Switzerland Could Have Been $33B Richer
Meisser is set to present the benefits of adding bitcoin to the Swiss National Bank’s balance sheet in a meeting on April 26, where he’ll have three minutes to plead his case. Previously, he proposed that the Central Bank buy 1 billion Swiss francs ($1.1 billion) worth of bitcoin monthly as an alternative to German government bonds in March 2022.
However, Swiss National Bank Chair Thomas Jordan dismissed the idea in April 2022, stating Bitcoin didn’t meet the requirements to be added as a reserve currency.
Meisser argues that, had the Central Bank followed his suggestion in 2022, Switzerland would now be 30 billion Swiss francs ($32.9 billion) richer. He warns that delaying the decision risks other central banks entering the Bitcoin market earlier than Switzerland’s, leaving the country at a disadvantage.
Swiss Bitcoin advocates are pushing for a significant change in the country’s financial landscape, aiming to position Switzerland at the forefront of embracing bitcoin as a reserve asset.
