Switzerland Federal Chancellery Registers Bitcoin (BTC) Proposal for Public Vote

The Swiss Federal Chancellery registered a new initiative on December 31, proposing that the Swiss National Bank hold Bitcoin as part of its reserves, potentially setting the stage for a public referendum.

The initiative, spearheaded by a group of 10 Bitcoin advocates, including Giw Zanganeh, who happens to be Tether’s vice president of energy and mining, and Yves Bennaïm, founder of the Swiss Bitcoin think tank 2B4CH, seeks to amend the Swiss Federal Constitution.

The Proposal

The proposed amendment to Article 99 Paragraph 3 would require the SNB to build sufficient monetary reserves from its own earnings, with part of them consisting of gold and Bitcoin. Advocates for the initiative argue that incorporating BTC into the nation’s monetary framework would promote a financially sound and sovereign Switzerland.

According to the official document, the process to secure a referendum requires the collection of 100,000 valid signatures from Swiss citizens by June 30, 2026. This represents approximately 1.12% of Switzerland’s population of 8.92 million. If the threshold is met, Swiss citizens will vote on the proposal through the country’s direct democratic process.

The initiative is a renewed effort by 2B4CH, which had initially postponed a similar proposal in October 2021 due to Bitcoin’s relative novelty as a strategic national asset at the time. Since then, the global dialogue on Bitcoin’s role in national reserves has gained traction, bolstering the case for its inclusion.

Additionally, El Salvador, the first country in the world to use Bitcoin as legal tender, partnered with Lugano, Switzerland, in October 2022 to promote Bitcoin adoption across Europe. As part of the deal, the Central American country even opened a “Bitcoin office” staffed by an Honorary Consul dedicated to this mission.

SNB’s Skepticism

Despite the momentum that has stemmed from public and global interest, the proposal faces an uphill battle. It is important to note that the SNB has historically been skeptical of cryptocurrencies.

In fact, the central bank’s chairman Chairman, Martin Schlegel, recently expressed caution regarding assets like Bitcoin and Ether. Schlegel raised issues about the high volatility of these assets, arguing that it hinders their use for payments. He also brought attention to their connection with illegal activities and the complexities involved in regulating them.

However, the initiative’s registration in itself is a significant milestone as it reflected a growing interest in integrating digital assets into traditional financial systems. It also aligns with Switzerland’s reputation as a hub for cryptocurrency innovation and adoption.