The integration of digital currency and its use in financial reserves has emerged as a discussion in Switzerland. A group of citizens known as the Bitcoin Initiative is working toward getting 100,000 signatures within the time period of 18 months to include Bitcoin in the reserves of the Swiss National Bank (SNB) while amending it in the Swiss constitution as well.
The proposal has now entered the collection of official signatures and if this move is successful, the plans will go to the national referendum.
Bitcoin advocates voice that inclusion of Bitcoin currency as a monetary reserve similar to gold would be an ideal option. The proposal in addition aims at including Bitcoin in Article 99, Clause 3 of the constitution of Switzerland, where it currently states portions of funds must be retained in gold.
However inclusion of Bitcoin and gold would aim at changing the fiscal framework of Switzerland entirely, as it would allow for some minimal adjustment in wording of the constitution.
The proposal though is facing some pushback from experts such as CryptoQuant CEO due to it being considered infeasible, particularly in the United States, which is countered with a wider global embrace of Bitcoin use as a reserve currency coming into conflict.
In Switzerland, the residents have a strong belief that in the near future the country can go a step further and secure Bitcoin Gold. Giw Zanganeh, the Vice President of Energy and Mining at Tether explained that the project has now been included in the Federal Gazette which is a significant milestone and now collection of signatures can begin.
After all the needed signatures are secured, the proposal will be taken to the Swiss Federal Assembly and then put on a national vote in Switzerland.
There’s no question as to why the country is held in high regards considering their passionate and pro-crypto policies along with their rich resources.
If we shift our attention to Switzerland times, it has been possible for taxpayers in the canton called Crypto Valley to use Bitcoin as payment for taxes since 2016, transforming this region into a stronghold for blockchain and cryptocurrency companies.
The country has always been very open towards anything related to digital assets, which is one of the core reasons as to why the initiative towards the Bitcoin project made sense and gained traction.
However, a previous call made by the CEO of the think tank 2B4CH in a bid for adoption of Bitcoin into national reserves in Switzerland was unsuccessful, but the present proponents assure that the introduction of Bitcoin into the balance sheet of the Swiss National Bank would uphold the country as the leader of financial inventions.
The rising interest in Bitcoin in Switzerland can be seen in line with the global trends including the forecasts made by Franklin Templeton suggesting that by the year 2025 more countries would decide to include certain amounts in the form of currency in their reserves.
This trend is already being seen in other countries with individuals such as Donald Trump advocating for a strategy where Bitcoin is held in reserves and officials in Germany and Hong Kong talk about the holding of Bitcoin in their reserves.
Also, the introduction of spot Bitcoin ETFs in the United States has led to more institutions wanting to buy into the currency.
On the other hand, the undertaking has a number of serious challenges. It is important to note that Switzerland has a high degree of neutrality and is careful in amending their constitution which is a time-consuming and tedious process. Achieving 100,000 of such qualifying signatures within the timeframe will be an uphill task.
There are also issues treating Bitcoin as a reserve currency especially in comparison to stables such as gold and other currencies. Even with such challenges, supporters believe Bitcoin is a good reserve currency because it is scarce and its system is decentralised making it ideal in backing reserve currencies.
