Bern - Saba:
The head of the Swiss central bank, Martin Schlegel, said Bitcoin is too volatile and illiquid to be used as a reserve currency, amid calls for a referendum on the issue in the wealthy country.
In an interview published Saturday in Tamedia Media Group newspapers, Schlegel said cryptocurrencies do not meet the criteria "that a good currency should have."
Schlegel, who has run the Swiss National Bank since October 2024, explained that these currencies are "very volatile" making them difficult to manage, while currency reserves should be "very liquid so they can be used quickly".
A popular initiative launched in December 2024, as is common under Switzerland's system of direct democracy, demands that the central bank's monetary reserves include Bitcoin, the most stable cryptocurrency, AFP reports.
Initiative organizers have until the end of June 2026 to collect the 100,000 signatures required for a referendum.
On Friday, Bitcoin fell below $ 80,000 for the first time since November. It is currently down more than 25 percent from its peak of about $ 110,000 a few hours before the inauguration of President Donald Trump on January 20.
The head of the Swiss central bank, Martin Schlegel, said Bitcoin is too volatile and illiquid to be used as a reserve currency, amid calls for a referendum on the issue in the wealthy country.
In an interview published Saturday in Tamedia Media Group newspapers, Schlegel said cryptocurrencies do not meet the criteria "that a good currency should have."
Schlegel, who has run the Swiss National Bank since October 2024, explained that these currencies are "very volatile" making them difficult to manage, while currency reserves should be "very liquid so they can be used quickly".
A popular initiative launched in December 2024, as is common under Switzerland's system of direct democracy, demands that the central bank's monetary reserves include Bitcoin, the most stable cryptocurrency, AFP reports.
Initiative organizers have until the end of June 2026 to collect the 100,000 signatures required for a referendum.
On Friday, Bitcoin fell below $ 80,000 for the first time since November. It is currently down more than 25 percent from its peak of about $ 110,000 a few hours before the inauguration of President Donald Trump on January 20.