A movement spearheaded by Swiss Bitcoin enthusiasts, led by Yves Bennaïm, is underway to introduce a referendum aimed at amending the Swiss constitution. Their proposal seeks to compel the Swiss National Bank (SNB) to incorporate Bitcoin into its currency reserves alongside gold, local media reports.
The proposed constitutional amendment is concise yet carries significant implications. It intends to revise the clause mandating the SNB to “build up sufficient currency reserves from its earnings; part of these reserves shall be held in gold,” to include “and Bitcoin.” Despite its brevity, this alteration could precipitate a substantial transformation in the nation’s fiscal management.
Yves Bennaïm, a prominent figure in the Swiss crypto community and a board member of the Bitcoin Association Switzerland, emphasized that the initiative transcends mere asset diversification. He views it as a strategic maneuver to “preserve our sovereignty and neutrality” amidst a volatile global economy. Bennaïm aims to spark a broader conversation about Switzerland’s future financial trajectory.
Support for the initiative extends beyond grassroots activism. Luzius Meisser, President of the asset management division at Bitcoin Suisse, lends credence to the proposal. Meisser contends that Bitcoin offers long-term resilience compared to traditional investments in euros and dollars, which are vulnerable to inflationary pressures. He suggests that embracing Bitcoin could signify Switzerland’s financial autonomy from major central banks like the European Central Bank.
The initiative has garnered attention from various quarters of the financial sector. Leon Curti, Head of Research at Digital Asset Solutions, observes Bitcoin’s evolving status in global markets, suggesting that its recent classification as a commodity by the US Securities and Exchange Commission could facilitate its inclusion in SNB reserves.
Academic endorsement comes from Professor Gunther Schnabl, leading the Institute for Economic Policy at the University of Leipzig. Schnabl advocates for Bitcoin as a hedge against rising government debt and default risks in industrialized nations, proposing it as a valuable addition to SNB’s foreign currency reserves.
Nevertheless, critics caution against Bitcoin’s historical volatility and lingering regulatory uncertainties. They argue that such characteristics may not align with the conservative strategies traditionally favored by national central banks.
Two years prior, Thomas Jordan, the outgoing SNB Chairman, rebuffed a similar proposal, citing Bitcoin’s inability to meet currency reserve requirements. The SNB’s current stance remains unclear amidst evolving regulatory and economic dynamics.
Luzius Meisser speculates on the potential windfall Switzerland could have reaped had it pursued an aggressive Bitcoin acquisition strategy earlier. He estimates that had the SNB commenced buying CHF 1 billion worth of Bitcoin monthly since 2022, Switzerland’s reserves could have been enriched by around 30 billion francs ($32.9 billion) today.
In Switzerland, any citizen can initiate a national referendum to amend the constitution by gathering 100,000 valid signatures. The outcome of this referendum could not only shape Switzerland’s financial strategy but also set a precedent for other nations. As the SNB braces for its upcoming Annual General Meeting, all eyes are on how it will respond to this unprecedented proposal.
