Will Switzerland Become a 'Bitcoin Reserve Nation'?

Korea Economic Daily

Summary

Switzerland is pushing for a legal amendment to mandate the Swiss National Bank to reserve Bitcoin, which proponents say will strengthen the financial system.
There is controversy over the bill, with opponents pointing out that Bitcoin's volatility could pose a risk to the financial system.
Experts predict that Bitcoin prices will continue to rise, reaching $200,000 by 2025.

'Mandatory Reserve' Law Amendment Controversy

Proponents: "Strengthening the Financial System"

Central Bank & Opponents: "Unstable Asset"

Switzerland is pushing for a legal amendment to mandate the Swiss National Bank (SNB) to reserve Bitcoin. If this bill passes, Switzerland will become the first country where the central bank officially holds Bitcoin.

According to Reuters on the 31st, a group of Swiss cryptocurrency advocates has initiated an initiative to amend the law to require the SNB to hold part of its reserves in gold and Bitcoin. This initiative is a right that allows citizens to demand constitutional amendments and legislative changes. In Switzerland, national referendums are regularly held on legislative initiatives for federal law amendments. These groups aim to gather 100,000 signatures within 18 months to bring it to a national vote.

In Switzerland, there is heated debate over the bill. Cryptocurrency advocates believe that the SNB's holding of Bitcoin could stabilize the value of the Swiss Franc and strengthen the financial system. On the other hand, cryptocurrency opponents argue that Bitcoin's volatility could pose a risk to the financial system.

The SNB maintains a skeptical stance on Bitcoin. Martin Schlegel, President of the SNB, stated last month that "the price volatility is too high to consider it a stable asset."

Meanwhile, cryptocurrencies are being evaluated as entering a new growth phase with acceptance and regulatory easing in the mainstream. Bitcoin rose over 120% last year, surpassing $100,000 per coin. The cryptocurrency market value reached $3.5 trillion. Key factors in Bitcoin's rise include the U.S. Securities and Exchange Commission (SEC) approving a Bitcoin spot exchange-traded fund (ETF) and the re-election of cryptocurrency-friendly former U.S. President Donald Trump. Companies like the U.S. software firm MicroStrategy's Bitcoin buying spree also contributed.

Experts predict that Bitcoin prices will continue to rise in 2025. Investment firm Bernstein forecasts that "Bitcoin will rise to $200,000 by the end of 2025."

Hyein Lee hey@hankyung.com

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