Switzerland aims to change the constitution to allow Bitcoin to be listed alongside Gold as a reserve currency thus changing its monetary policy.
The initiative needs 100,000 signatures from Swiss citizens by June 30 to continue its process toward Federal Assembly approval.
This adding Bitcoin might help to diversify sources and utilize Bitcoin’s decentralized nature and scarce, limited supply as a hedge against economic instability in times of financial crisis.
Switzerland has recently embarked on a very aggressive strategy of joining Bitcoin to the reserves of the SNB, the Swiss National Bank. The proposal contained in the Federal Gazette can be perceived as a new long-term trend of increasing recognition of cryptocurrencies in monetary policy. Before this, however, backers have to gather 100,000 handwritten signatures of the Swiss voters until the 30th of June.
Constitutional Amendment in Focus
Article 99 $ch of the Swiss federal constitution, which at present stipulates gold reserves. The proposed revision aims at adding Bitcoin as an accompaniment for conventional assets. The proponents explain that given the decentralized nature of accounting and the limited availability of Bitcoin, it can be compared to gold – a stabilizer and a diversifier of the investment portfolio.
The currently diversified reserve portfolio of the SNB consists of different fiat currencies and about 1040 tons of gold. Introducing the BTC into these reserves may enhance the financial security of the bank, particularly throughout times of increased credit risk.
Historical and Global Context
This proposal is not Switzerland's first encounter with cryptocurrency integration. In 2021, a similar effort by the think tank 2B4CH did not draw much attention. However, the global environment has changed, and today even such powers as the USA discussed the need for strategic bitcoin reserves. This may be the changing environment that could give new impetus for Switzerland to lead in this sector.
Bitcoin supporters say that it can just as well be used as a kind of reserve currency that can act in parallel with other assets. Because of this it doesn’t depend on the conventional financial industry and acts as an option during various changes on the market. Nevertheless,
