Switzerland’s Bitcoin advocates have embarked on an endeavour aimed at persuading the Swiss National Bank to incorporate Bitcoin (BTC) into its reserves, leveraging a constitutional referendum.
Leading this charge is Yves Bennaïm, at the helm of the non-profit think tank 2B4CH, who asserts that integrating Bitcoin into the national bank’s reserves is imperative to safeguard Switzerland’s “sovereignty and neutrality” amidst escalating global uncertainties.
In an interview with the Swiss media outlet Neue Zürcher Zeitung, Bennaïm disclosed that the groundwork is being laid, with organizational structures being finalized and requisite documentation being prepared for submission to the State Chancellery to initiate the referendum process.
The referendum necessitates gathering 100,000 signatures from Swiss citizens within 18 months, a milestone that proved challenging during 2B4CH’s initial attempt in October 2021. Back then, the “Bitcoin Initiative” sought to enshrine Bitcoin as a reserve currency in Article 99-3 of the Swiss Federal Constitution, reflecting the nation’s commitment to embracing financial innovation.
With Switzerland’s population standing at 8.77 million, rallying support from approximately 1.15% of the populace is essential to propel the petition forward.
Collaborating with Bennaïm is Luzius Meisser, head of the Bitcoin-centric trading platform Bitcoin Suisse, who emphasizes that including Bitcoin in the reserves would affirm Switzerland’s financial autonomy from the European Central Bank and fortify its stance of neutrality.
Meisser is slated to present the case for Bitcoin’s inclusion in the central bank’s assets during a meeting with the Swiss National Bank scheduled for April 26th.
However, his previous proposition in March 2022, suggesting the central bank allocate $1.1 billion monthly to purchasing Bitcoin instead of German government bonds, was rebuffed by Thomas Jordan, Chair of the Swiss National Bank. Jordan cited Bitcoin’s failure to meet the requisite criteria for classification as a reserve currency.
Meisser contends that had the central bank embraced his proposal in 2022, it would now be reaping the benefits of an additional $32.9 billion. He underscores the urgency of swift action, warning that delays could lead to escalated acquisition costs as other central banks enter the fray.
The initiative garners international backing, with figures like Joana Cotar, a German politician and prominent Bitcoin advocate, throwing their weight behind the cause. Cotar’s scepticism towards a European Union-backed digital currency aligns with her support for Switzerland’s Bitcoin integration efforts.
This push to include Bitcoin in Switzerland’s national reserves mirrors the country’s burgeoning status as a leading hub for blockchain and cryptocurrency innovation. The exponential growth of Crypto Valley, a premier centre for web3 and blockchain endeavours in Switzerland, highlights the nation’s commitment to fostering digital asset ecosystems.
In 2023, the combined value of the top 50 entities in Crypto Valley soared to $382.93 billion, indicative of the sector’s robust expansion. Notable entities such as the Cardano Foundation, Ethereum Foundation, Nexo, and Metaco (a custody solution owned by Ripple) show Switzerland’s role in shaping the future of finance.
Additionally, the city of Lugano in Southern Switzerland’s decision to accept Bitcoin and other cryptocurrencies for tax payments further signifies the nation’s progressive stance on digital currencies.
