Swiss National Bank (SNB) Chairman Martin Schlegel has reiterated the central bank’s cautious stance toward cryptocurrencies, underscoring the ongoing importance of cash in Switzerland’s payment landscape. Schlegel made the remarks at an event hosted by the Aargauische Kantonalbank in Brugg, where he outlined the SNB’s views on digital assets and the role of physical currency in a rapidly digitizing world.
“Bitcoin and other virtual currencies have grown enormously in recent years,” Schlegel said, acknowledging the global rise of digital assets like Bitcoin and Ether. “But despite this growth, these currencies remain a niche phenomenon.” The SNB chairman’s comments reflect a deep-rooted skepticism within Switzerland’s central bank about the practicality of cryptocurrencies, especially in everyday financial transactions.
While avoiding specific predictions about the future of digital assets, Schlegel highlighted several significant concerns associated with cryptocurrencies. He cited their extreme volatility, which often makes them unsuitable for stable transactions, as one of the core issues. “Cryptocurrencies also require a huge amount of energy,” Schlegel pointed out, referencing the environmental impact associated with crypto mining. Additionally, he mentioned their links to illicit activities and the difficulty of effective regulation, further underscoring the risks that have made many central banks wary of adopting these digital assets.
However, Schlegel emphasized that the Swiss National Bank is actively exploring technological advancements, particularly in digital payments. The SNB is currently piloting a central bank digital currency (CBDC) project designed to facilitate smoother transactions between financial institutions, marking a significant step in the bank’s digital transition. This effort reflects a balanced approach: while reluctant to embrace unregulated cryptocurrencies, the SNB recognizes the importance of adapting to the evolving financial landscape.
In a further nod to modernization, the SNB introduced instant payment services in August, allowing transactions between bank accounts to be completed within seconds rather than days. This new feature aligns Switzerland with other leading economies in terms of payment efficiency, enhancing convenience for both consumers and businesses.
Despite these digital innovations, Schlegel reaffirmed the SNB’s commitment to preserving cash as an integral part of Switzerland’s payment system. The central bank recently announced a forthcoming series of redesigned banknotes, signaling a continued dedication to cash even amid rapid digitalization. “Despite the digitalisation of the electronic payment system, we believe that cash will play an important role in the future,” he said.
Schlegel defended cash for its unique advantages, emphasizing its reliability and ease of use in transactions that require no technology. “Cash offers many advantages. It does not require any technology. It is anonymous, for example; you can simply pay with a banknote.”
As economies worldwide adopt digital payments, the SNB’s position illustrates Switzerland’s careful balance between innovation and tradition.
