On December 31, 2022, Switzerland witnessed a significant development in the realm of cryptocurrency. The Swiss Federal Chancellery registered an initiative that proposes the Swiss National Bank (SNB) to include Bitcoin in its reserves. Spearheaded by a coalition of ten Bitcoin proponents, including notable figures like Giw Zanganeh—Vice President of Energy and Mining at Tether—and Yves Bennaïm, founder of the Swiss Bitcoin think tank 2B4CH, this initiative seeks to amend Article 99, Paragraph 3 of the Swiss Federal Constitution. The proposed amendment aims to mandate the SNB to build monetary reserves from its earnings, incorporating both gold and Bitcoin. This move is more than just financial strategy; it could be a vital step in reinforcing Switzerland’s position as a sovereign and economically sound nation.
Requirements for a Referendum
In order to bring this proposal to a public vote, the advocates must collect 100,000 valid signatures from Swiss citizens by June 30, 2026—a challenging but feasible task, representing about 1.12% of Switzerland’s population of approximately 8.92 million. If successful, this grassroots movement would lead Swiss citizens to directly engage in a democratic vote to determine the fate of Bitcoin within the nation’s monetary framework. Interestingly, the registration of this initiative is a resurgence of a previous effort by 2B4CH, which had opted to pause a similar proposition in October 2021. At that time, Bitcoin was still gaining traction globally, and its potential as a strategic asset was yet to be fully understood.
Global Context and Adoption
The conversation surrounding Bitcoin as a component of national reserves has gained momentum recently. One notable example of this is El Salvador, which became the first country to adopt Bitcoin as legal tender. In October 2022, El Salvador forged a partnership with Lugano, Switzerland, aiming to promote the adoption of cryptocurrency in Europe. This collaboration highlights a growing recognition among nations about the relevance of digital currencies to contemporary financial ecosystems. El Salvador even established a “Bitcoin office” staffed by an Honorary Consul, further emphasizing its commitment to this financial revolution.
Despite the increasing public and institutional interest in integrating Bitcoin into the Swiss monetary system, the proposal is anticipated to encounter several obstacles. The SNB has historically exhibited skepticism towards cryptocurrencies. Its chairman, Martin Schlegel, articulated concerns over the high volatility associated with Bitcoin and Ether, arguing that these factors undermine their viability as a stable means of payment. Additionally, Schlegel pointed to the issues surrounding illegal activities linked to cryptocurrencies, underscoring the complexities involved in regulatory frameworks aimed at managing these digital assets.
Nevertheless, the mere registration of this initiative serves as a landmark moment, reflecting the evolving landscape of financial systems that increasingly embrace digital assets. It demonstrates Switzerland’s ongoing reputation as a leader in cryptocurrency innovation and adoption. As debates about the role of cryptocurrencies in global finance continue to unfold, the outcome of this initiative may have lasting implications not only for Switzerland but for the broader international dialogue surrounding the future of money. The world will be watching closely as Swiss citizens potentially take a decisive step into the future of finance.
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