• Swiss National Bank President Martin Schlegel has publicly stated that Switzerland does not need a stablecoin, citing volatility, liquidity, and security concerns.
  • The SNB is actively piloting a wholesale Central Bank Digital Currency (CBDC) for interbank payments, signaling a preference for state-backed digital currency over private alternatives.
  • The central bank's stance comes amid political pressure from a constitutional initiative seeking to force the SNB to hold Bitcoin and gold in its reserves.

Swiss National Bank President Martin Schlegel has reaffirmed the institution's firm stance against the adoption of a state-backed stablecoin, arguing that such a digital asset is unnecessary for the country's monetary system. In recent public statements, Schlegel emphasized that cryptocurrencies, including stablecoins, are too volatile, lack sufficient liquidity, and present significant security vulnerabilities, making them unsuitable for use in national reserves or as mainstream payment tools.

This position directly counters ongoing lobbying efforts from Swiss crypto advocates and a recent political initiative that is gathering signatures for a referendum. The initiative aims to constitutionally require the SNB to hold Bitcoin or gold, a move proponents argue would reduce Switzerland's dependence on foreign currencies like the dollar and euro. According to people familiar with the matter, the SNB leadership views this proposal as a fundamental threat to its mandate of ensuring monetary and financial stability.

Instead of embracing privately issued digital assets, the SNB is channeling its resources into the development of a wholesale Central Bank Digital Currency. The pilot project, which is currently underway, is focused on digital settlement for interbank payments. Schlegel and other officials have characterized crypto assets and stablecoins as remaining in a "niche" compared to the vast scale of global financial markets, with particular concerns about how they would perform during a financial crisis when liquidity is uncertain.

The SNB's cautious approach aligns with policies from other major conservative central banks, including the European Central Bank and the U.S. Federal Reserve, which have also expressed deep skepticism about integrating cryptocurrencies into their core monetary operations. This stance has disappointed some segments of Switzerland's robust crypto industry, which had hoped for a more welcoming policy from a nation known for financial innovation.

A spokesperson for the SNB declined to comment further on the political initiative, reiterating that the bank's primary focus remains on stability. With the referendum effort still requiring tens of thousands of signatures to proceed, the immediate future of Swiss monetary policy appears firmly set on exploring digital innovation within a tightly regulated, state-controlled framework, leaving no room for a national stablecoin.