Switzerland central bank says it wants nothing to do with Bitcoin in spite of Trump

Switzerland’s central bank wants nothing to do with Bitcoin, no matter what happens in the United States. Even as Donald Trump, now back in the White House, pushes for a strategic Bitcoin reserve, the Swiss National Bank (SNB) has made it clear: crypto is not part of its plan.

“We do not have plans to buy crypto assets,” said Martin Schlegel, the bank’s vice chairman, in an interview in Zurich. He pointed to Bitcoin’s price swings, lack of legal protections, and overall instability as reasons why the SNB won’t be adding it to its balance sheet.

SNB says crypto doesn’t meet its reserve standards

Switzerland has some of the most crypto-friendly regulations in the world, but the central bank sees things differently. Schlegel said that the SNB’s foreign exchange reserves serve one purpose: monetary policy. And Bitcoin doesn’t fit. “For example, it’s the preservation of value,” he said. “And as you know, cryptocurrencies have large fluctuations in value, so this is not a given.”

Liquidity is another issue. Schlegel said that Bitcoin and other crypto assets have “question marks” around them. Unlike traditional currencies, he explained, Bitcoin is software-based, meaning it’s vulnerable to bugs and other technical risks.

Not everyone in Switzerland agrees with the SNB’s stance. A popular initiative is now underway to force the bank to hold Bitcoin in its reserves. The proposal needs 100,000 signatures by June 2026 to trigger a public vote. If it reaches that threshold, the Swiss public—not the central bank—will have the final say on whether Bitcoin becomes part of the nation’s official reserves.

But even as Switzerland experiments with a wholesale central bank digital currency (CBDC), Schlegel’s position on Bitcoin hasn’t changed. He dismissed it as a “niche phenomenon” last November, and his response now suggests the SNB’s policy is set in stone.

Swiss National Bank cuts rates as inflation hits four-year low

As the SNB shut the door on Bitcoin, it also made another major move: a 25-basis-point interest rate cut on Thursday. The bank’s main rate is now 0.25% as Switzerland battles low inflation and economic uncertainty.

“With today’s rate adjustment, the SNB is ensuring that monetary conditions remain appropriate, given the low inflationary pressure and the heightened downside risks to inflation,” the bank said in a statement. It also left the door open for more rate cuts if needed.

Markets expected this move. Traders had already priced in a 70% chance of a quarter-point cut. This follows a 50-basis-point cut in December, which had already taken many by surprise. That cut was the fourth since March 2024, when Switzerland became the first major economy to start easing monetary policy.

The reason? Inflation is crashing. Swiss inflation dropped to 0.3% in February, the lowest in almost four years. The Federal Statistics Office attributed the decline to cheaper imports. The SNB said inflation had developed as expected, adding that without the rate cut, its medium-term forecasts would have been even lower.

Looking ahead, the central bank expects inflation to average 0.4% in 2025. Stefan Gerlach, the chief economist at EFG Bank, said the SNB had been preparing for this. “It’s sort of panning out the way the SNB thought it would,” he said. “I think a cut now is warranted to make sure that inflation doesn’t go too low.”

Following the SNB’s decision, the Swiss franc weakened slightly, with the euro rising 0.06% against it. Even with lower rates, the franc has stayed relatively strong, as it is still seen as a safe haven during global uncertainty.

While the SNB focused on domestic monetary policy, Schlegel also weighed in on the impact of Trump’s global tariffs. He said that Switzerland relies heavily on exports and depends on free trade. “Switzerland is a small open economy, and a large part of the Swiss economy actually is exporters,” he said. “This means that Switzerland really needs open borders and needs free trade, and this means the exchange rate is also important.”

For now, the SNB remains focused on monetary stability—with no plans to buy Bitcoin, no matter what happens in Washington. But with a public vote looming, the final decision on whether Switzerland adds Bitcoin to its reserves could soon be out of the central bank’s hands.

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