Vice President Martin Schlegel made clear in Zurich on Thursday that the central bank adheres to its long-standing stance against holding digital currencies.

This declaration follows heightened interest in cryptocurrencies, particularly in light of U.S. President Donald Trump's recent advocacy for the establishment of a strategic crypto reserve in the United States. Despite such shifts in sentiment from political figures, Schlegel reinforced that the SNB remains firmly opposed to digital currency holdings.

In an interview with Bloomberg Television, Schlegel expressed concerns regarding the extreme price volatility associated with cryptocurrencies, the lack of adequate safeguards, and the fragile legal frameworks surrounding these assets. He stated, "We do not have plans to buy crypto assets," underscoring that the SNB's foreign exchange reserves are dedicated solely to fulfilling its monetary policy objectives, which cryptocurrencies do not support.

Schlegel elaborated on the challenges presented by digital currencies, highlighting their inherent value fluctuations and questioning their reliability due to their software nature, which makes them vulnerable to technical flaws.

While the SNB maintains its sceptical outlook, developments in the United States suggest a contrasting trajectory. President Trump has taken steps towards embracing cryptocurrencies, recently signing an executive order that establishes a U.S. Strategic Bitcoin Reserve, aimed at converting confiscated cryptocurrencies into a national "digital Fort Knox." This initiative mirrors a broader federal trend towards integrating crypto infrastructure, with Congress actively considering several bills focused on incorporating blockchain technology within government operations. Concurrently, individual states are proposing legislation to invest public funds in bitcoin and other digital assets, representing a marked departure from the cautious approach of the SNB amidst the global cryptocurrency discourse.