Why a Swiss Bitcoin Reserve?

1. Why should the Swiss National Bank purchase Bitcoin?

1.1 Independence

Bitcoin is considered a neutral currency, as there is no clearly identifiable issuer or other reference to a nation-state, an international organization, or a supranational community. The acquisition of Bitcoins thus seems to strengthen the political independence of the SNB from other currency areas and their central banks and governments as issuers of currencies or government bonds. It should also be noted that although the National Bank is politically independent, Art. 5 Para. 1 NBG urges the SNB to conduct its monetary and currency policy "in the overall interest of the country." It should be noted that Switzerland has a strategic interest in the success of cryptocurrencies, as they are suitable for reducing Switzerland's political and economic dependence on the euro and the US dollar.

1.2 Return

Various studies demonstrate that adding cryptocurrencies, such as Bitcoin, to a portfolio can enhance long-term returns on both an absolute and risk-adjusted basis.

See this project comparing an SNB portfolio with a 1% Bitcoin allocation to one without.

1.3 Marketing Effect

The Swiss National Bank's acquisition of Bitcoin represents a strategic enhancement to the nation's financial architecture, with significant implications for the domestic cryptocurrency industry.

According to the 2021 CV VC Top 50 Report, produced by CV VC in collaboration with PwC, more than 6,000 individuals were employed in Switzerland's cryptocurrency sector as of 2021 (see page 13). This figure has grown from zero in 2013 to three with the founding of Switzerland's first cryptocurrency company, Bitcoin Suisse. The subsequent expansion of the sector has been nothing short of exponential.

Concurrently, there's a notable contrast in the traditional banking sector of Switzerland, which has experienced a reduction of ~15,300 jobs (-12.0%) between 2013 and 2024 (source: Swiss National Bank).

2. Is It Too Late?

"It wasn't long before the world took notice of the shortage. In a classic bank-run scenario, anxious European governments began racing to redeem dollars for American-held gold before the Fed ran out. In July 1971, Switzerland withdrew $50 million in bullion from U.S. vaults. In August, France sent a destroyer to escort $191 million of its gold back from the New York Federal Reserve. Britain put in a request for $3 billion shortly thereafter."

Today, with fiat systems under pressure from inflation, debt, and debasement, we face a similar turning point. Just as in 1971, Switzerland can act preemptively—this time by adopting Bitcoin as a reserve asset. The question is not if nation-states will hold Bitcoin, but who will lead. For Switzerland, embracing Bitcoin now would align with its historic commitment to monetary sovereignty and innovation.

3. What are other National Banks doing?

Several countries are already actively working on a cryptocurrency strategy. Here's an overview:

Country	Holdings (BTC)	% of Total	CHF Value	Source	Public Reserve
USA	198.0k	0.943%	CHF 18.8B	Seizure	On-Chain
Bhutan	12.0k	0.057%	CHF 1.1B	Mined	On-Chain
UAE	8.3k	0.040%	CHF 789.5M	Acquired	ETF holding
El Salvador	2.8k	0.013%	CHF 266.0M	Acquired	On-Chain

Note: Several countries probably hold Bitcoin but haven't publicly disclosed it.

3.1 USA

United States Federal Reserve: While the Fed has not purchased Bitcoin for its balance sheet, it has been actively researching Central Bank Digital Currencies (CBDCs) and monitoring cryptocurrency developments. The Fed maintains that any decision to hold cryptocurrencies would require Congressional approval. However, Fed officials have acknowledged Bitcoin's role as a "digital gold" and store of value, though they remain cautious about its volatility and regulatory implications.

3.2 El Salvador

In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender alongside the US dollar. The Central Reserve Bank of El Salvador has been actively purchasing Bitcoin, accumulating over 2,800 BTC worth approximately $150 million. President Nayib Bukele has implemented a strategy of buying Bitcoin during market dips, viewing it as a long-term store of value and hedge against inflation. View El Salvador's Bitcoin holdings.

3.3 Bhutan

The Royal Monetary Authority of Bhutan has been quietly mining Bitcoin using the country's abundant hydroelectric power since 2019. Recent reports suggest Bhutan holds approximately $750 million worth of Bitcoin, making it one of the largest sovereign Bitcoin holders relative to GDP. The kingdom leverages its renewable energy resources to mine Bitcoin sustainably, viewing it as a way to monetize excess hydroelectric capacity. View Bhutan's Bitcoin holdings.

4. Should the SNB also hold other cryptocurrencies?

While Bitcoin represents the most established cryptocurrency, diversification across multiple digital assets could be a smart strategic move for the SNB. Holding a diversified portfolio of cryptocurrencies, including Ethereum, which serves as the foundation for decentralized finance (DeFi) and smart contracts, could provide additional risk mitigation and exposure to different blockchain technologies.

5. Should the SNB buy BTC ETFs or Bitcoin proxies like MicroStrategy (MSTR)?

While Bitcoin ETFs and proxy investments like MicroStrategy (MSTR) might seem like convenient alternatives to direct Bitcoin ownership, they would not serve the strategic independence goals of the Swiss National Bank. Here's why direct Bitcoin ownership is preferable:

Increased US Dependence: Bitcoin ETFs are primarily domiciled in the United States and subject to US regulatory oversight, SEC regulations, and potential government intervention. Similarly, MicroStrategy is a US-based public company subject to US corporate law, SEC reporting requirements, and potential sanctions. This would actually increase Switzerland's reliance on US financial infrastructure rather than reducing it.

Counterparty Risk: ETFs and proxy investments introduce unnecessary intermediaries and counterparty risks. The SNB would be exposed to the financial health of the ETF provider, custodial arrangements, and corporate decisions of companies like MicroStrategy. Direct Bitcoin ownership eliminates these intermediaries and provides true monetary sovereignty.

Regulatory Vulnerability: US-based Bitcoin investment vehicles could be subject to sanctions, freezing of assets, or regulatory changes that could impact the SNB's holdings. The 2022 freezing of Russian central bank assets demonstrated how quickly access to foreign-held reserves can be restricted during geopolitical tensions.

True Monetary Independence: The core argument for Bitcoin adoption is achieving greater monetary independence from traditional fiat currencies and foreign central banks. Using US-based investment vehicles would undermine this objective and maintain dependence on US financial institutions and regulatory frameworks. Direct Bitcoin ownership, properly secured in Swiss-controlled custody solutions, would provide genuine monetary sovereignty aligned with Switzerland's neutral stance.

6. Actionable Steps for the Swiss National Bank (SNB) to Initiate a Bitcoin Reserve

The Swiss National Bank could operationalize a phased approach to Bitcoin adoption by executing the following measures:

• Establish a dedicated task force comprising IT security specialists, legal counsel, compliance officers, and operational management to oversee all facets of the project.
• Implement an ultra-secure, multi-signature ("multi-sig") cold storage solution for safeguarding the Swiss Bitcoin Reserve.
• Open institutional accounts at Swiss cryptocurrency brokers (e.g., Bitcoin Suisse) or one of the approximately 24 Swiss banks offering crypto services, to facilitate the acquisition of Bitcoin.
• Conduct a pilot purchase and execute a test transaction, transferring Bitcoin from the acquisition venue to the cold storage multi-sig wallet.
• Validate the integrity and operational reliability of the multi-sig solution by performing an outbound transaction from the multi-sig wallet.
• Issue a public communication announcing the establishment of the Swiss Bitcoin Reserve. Transparently disclose the multi-sig wallet address and the amount of capital allocated to the Bitcoin reserve strategy. Emphasize the SNB's mandate to act in the public interest, highlighting the importance of transparency.
• Employ a dollar-cost averaging (DCA) strategy for systematic Bitcoin acquisition, mandating daily settlement of purchased assets to the multi-sig wallet.

7. Past attempts to convince the SNB

Over the years, various individuals, organizations, and politicians have made efforts to encourage the Swiss National Bank to consider Bitcoin as part of its reserve strategy. These attempts have taken different forms, from official letters and parliamentary motions to public campaigns and social media advocacy.

7.1 2022

March 2022: Luzius Meisser proposed that the SNB should purchase 1 billion Swiss francs worth of Bitcoin monthly instead of German government bonds. He argued this would strengthen Switzerland's financial independence and neutrality. The proposal was rejected by then-SNB Chairman Thomas Jordan, who stated that Bitcoin did not meet the criteria for a reserve currency.

7.2 2023

August 2023: In an episode of the Defire Podcast, Meisser advocated for the SNB to hold Bitcoin, describing it as "digital gold" and suggesting that national banks would eventually adopt it as a reserve currency. He emphasized the strategic advantage for early adopters.

7.3 2024

April 2024: Meisser spoke at the SNB's annual general meeting, where he had three minutes to present arguments for including Bitcoin in the SNB's reserves. He highlighted Bitcoin's role in protecting Switzerland's sovereignty and neutrality amid global economic instability.

June 2024: Michael Jakob published a thought-provoking opinion piece in the NZZ titled "How Secure is the National Bank Given Developments in the Financial World?" where he questioned the SNB's current strategy and suggested considering alternative reserve assets including Bitcoin.

7.4 2025

The advocacy efforts continue into 2025, with renewed momentum following global developments in Bitcoin adoption by institutions and other central banks. Recent social media campaigns have gained traction, bringing the discussion to a broader public audience.

8. Support the Grassroot movement

8.1 By Signing the Swiss Bitcoin Initiative

The Swiss Bitcoin Initiative is a grassroots movement aimed at encouraging the Swiss National Bank to include Bitcoin in its monetary reserves. This citizen-led initiative represents a growing call from the Swiss public for their central bank to embrace digital assets as part of a forward-thinking monetary policy.

8.2 By Joining the Bitcoin Association Switzerland

The Bitcoin Association Switzerland is the leading organization promoting Bitcoin education, adoption, and advocacy throughout Switzerland. Founded to advance the understanding and responsible use of Bitcoin technology, the association serves as a hub for individuals, businesses, and institutions interested in the Bitcoin ecosystem.

8.3 By Joining a Crypto Company

Switzerland has established itself as a global cryptocurrency hub with over 1,000 companies operating in the crypto industry. The Swiss crypto ecosystem offers diverse career opportunities for professionals looking to dedicate their careers to advancing cryptocurrency adoption.

8.4 By Contributing to Research

Bitcoin and blockchain technology exist today only thanks to decades of groundbreaking research by dedicated scientists and academics in computer science, economics, mathematics, cryptography, and related fields. The innovations that made Bitcoin possible—from public-key cryptography to distributed consensus mechanisms—were developed by researchers who committed their careers to advancing human knowledge.

If you're pursuing an academic journey or considering research opportunities, consider how your work could contribute to advancing blockchain technology, cryptocurrency economics, or related fields. Research areas with significant impact potential include scalability solutions, privacy enhancements, economic modeling of digital assets, regulatory frameworks, and institutional adoption studies.