Swiss Federal Chancellor registers Bitcoin (BTC) referendum proposal

The Swiss Federal Chancellor registered a new initiative on December 31, proposing that the Swiss National Bank hold bitcoin as part of its reserves, which could set the stage for a public referendum.

Led by a group of 10 bitcoin advocates, including Gue Zanganeh, Tether's vice president of energy and mining, and Yves Bennai, founder of Swiss bitcoin think tank 2B4CH, he wants to amend the Swiss federal constitution.

The proposal

The proposed amendment to Article 99 paragraph 3 requires the SNB to build up sufficient cash reserves from its own income, partly including gold and bitcoin. Proponents of the move argue that including BTC in the country's monetary framework will promote a financially sound and sovereign Switzerland.

According to the official document, the process requires the collection of 100,000 valid signatures from Swiss citizens by June 30, 2026, which represents approximately 1.12% of Switzerland's population of 8.92 million. If the standard is met, Swiss citizens will vote on the decision through the country's direct democratic process.

The initiative is a renewed effort by 2B4CH, which initially postponed a similar proposal for October 2021 due to Bitcoin's relative newness at the time as a strategic national asset. Since then, the global discussion on the role of Bitcoin in national reserves has encouraged the inclusion of the issue.

Additionally, El Salvador, the first country in the world to use Bitcoin as legal tender, has partnered with Lugano, Switzerland, to promote Bitcoin adoption across Europe by October 2022. As part of the agreement, the Central American country has opened a “Bitcoin Office” with an honorary consul dedicated to this mission.

Suspicion of the SNB

Despite the impetus from public and international interest, the idea faces an uphill battle. It is important to note that the SNB has historically been skeptical of cryptocurrencies.

In fact, the chairman of the central bank, Martin Schlegel, recently expressed caution regarding assets such as Bitcoin and Ether. Schlegel raised issues about the high volatility of these assets, which hinders their use for payment. He paid attention to their connection with illegal activities and the complex problems of controlling them.

However, the registration of the initiative itself is a milestone as it shows the desire to integrate digital assets with traditional financial systems. It also lives up to Switzerland's reputation as a hub of Swiss cryptocurrency innovation and adoption.