Trump’s Crypto Reserve Plan Shakes the Market

On March 4, 2025, the cryptocurrency world buzzed with U.S. President Donald Trump’s unveiling of a strategic crypto reserve, spotlighting Bitcoin, Ethereum, Ripple, Solana, and Cardano as key assets. Yet, across the globe, Switzerland and Australia are charting a different course, with their central banks firmly rejecting the notion of weaving digital currencies into their official reserves.

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Switzerland’s Central Bank Says No to Bitcoin

Schlegel Rejects Bitcoin in National Reserves

In a decisive move, Martin Schlegel, President of the Swiss National Bank (SNB), shot down a grassroots proposal to include Bitcoin in the nation’s reserve portfolio. The idea, born from a public initiative, hit a brick wall when Schlegel declared that cryptocurrencies fall short of the hallmarks of a reliable currency.

The Case Against Crypto in Switzerland

Speaking to local media, Schlegel didn’t mince words: “Cryptocurrencies swing wildly in value, which makes them a poor fit for safeguarding our long-term investments.” He went on to emphasize the SNB’s need for assets that can be tapped instantly for monetary policy—something digital coins, with their erratic nature, can’t promise. “Plus,” he added, “they’re just software at their core, and software comes with glitches and vulnerabilities.”

Are these the headlines secretly dragging Bitcoin below the surface? Schlegel’s dismissal—echoed by a fiery X post: “Swiss National Bank snubs Bitcoin—Schlegel calls it too shaky and weak. They’ll live to rue this day!”—has sparked debate about whether such skepticism from financial heavyweights could quietly undermine BTC’s momentum.

Schlegel brushed off crypto as a “small-fry phenomenon,” pointing out that its market size pales next to traditional financial giants. Yet, crypto enthusiasts in Switzerland aren’t backing down. The “Bitcoin Initiative,” launched in December 2024, aims to amend the Swiss Constitution, mandating the SNB to hold Bitcoin alongside gold. With 18 months to gather 100,000 signatures under Swiss law, the campaign’s fate hangs in the balance—but it’s buoyed by the fact that one in nine Swiss citizens reportedly owns crypto, signaling a growing appetite for digital assets.

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Australia Opts for Regulation Over Reserves

Australia’s Government Prefers a Cautious Approach

Meanwhile, Australia’s government has taken a similarly cautious tack, announcing it has no intention of mirroring Trump’s crypto reserve plan. Instead, the focus Down Under is on tightening the reins with a robust regulatory framework set to roll out by the end of 2025. This choice has ignited a lively debate within Australia’s crypto community.

Experts Weigh In on Crypto’s Instability

Tom Matthews, head of corporate affairs at Swyftx, a leading Australian crypto exchange, weighed in: “A national crypto stash sounds appealing, but it’s a tricky beast to tame. Price swings could spell trouble if the government hoards too much of one coin—think of it as putting all your eggs in a very bouncy basket.”

Matthews’ comments echo a broader concern: volatility could destabilize reserves meant to be rock-solid.

Australia’s current center-left Labor government holds power, but a shift looms on the horizon. A recent YouGov poll shows the center-right coalition edging ahead, 51% to 49%, hinting at a possible change in leadership that could reshape crypto policy. For now, though, regulation trumps reserve-building.

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Why Volatility Keeps Crypto Out of Reserves

The Unpredictability Factor

Both nations spotlight crypto’s wild price swings as a dealbreaker. Schlegel elaborated, “Our reserves must stay liquid—ready to deploy at a moment’s notice. Cryptocurrencies, with their security quirks and rollercoaster values, don’t cut it.” He contrasted them with gold and traditional currencies, which offer the stability and trust that central banks crave.

Managing Crypto’s Risks

Matthews echoed this sentiment, noting, “Crypto’s ups and downs make it a risky bet for any government stash. Managing it right is no walk in the park—you’re juggling software risks and market chaos.” This wariness reflects a divide: While institutional players like Pantera Capital see crypto as the future, central banks cling to the tried and true.

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Gold vs. Crypto: Why Switzerland and Australia Stick to Tradition

Central Banks Favor Stability

While Trump’s crypto reserve vision has some dreaming of a digital gold rush, Switzerland and Australia are doubling down on a much older treasure: gold. As of March 2025, the SNB holds 1,040 metric tons of gold, worth roughly 80.2 billion USD at current prices (around 2,400 USD per ounce). Australia’s Reserve Bank (RBA) sits on a more modest 80 tons, valued at about 6.17 billion USD. Compare that to the United States, which boasts the world’s largest gold stash at 8,133 tons, or a staggering 627.5 billion USD—and you see a stark contrast.

The Timeless Appeal of Gold

Switzerland’s hoard is 12.8% of America’s, while Australia’s is a mere 0.98%, yet both nations see gold as their bedrock, not crypto. Why the loyalty to this shiny metal? Beyond volatility, liquidity, and security—Schlegel’s trio of concerns—gold offers a timeless appeal. Picture it as the financial world’s anchor: steady, reliable, and battle-tested over centuries.

Switzerland, a global banking hub, leans on its 1,040 tons (about 6.7% of its foreign reserves) to keep the Swiss Franc a safe-haven currency. With its commodity-driven economy, Australia holds 80 tons as a smaller but symbolic buffer, dwarfed by the U.S.’s 75% gold-heavy reserves.

Gold’s edge isn’t just numbers—it’s history. “It’s been a store of value since ancient times,” Schlegel might argue, “unlike crypto, which hasn’t weathered a real crisis.” Imagine a storm hitting the markets: gold stays put in a vault, while crypto could vanish with a hacker’s keystroke. It’s also a hedge against inflation and currency crashes—something Bitcoin’s wild 2022 tumble didn’t prove. Plus, gold’s physical heft in jewelry and tech gives it a real-world anchor crypto lacks, tied as it is to speculative hype.

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A Tale of Two Paths: Trump’s Vision vs. Caution

Crypto Adoption vs. Skepticism

Trump’s reserve plan has fired up the crypto crowd, with assets like SOL spiking 35% on March 2 after his announcement. Yet, Switzerland and Australia’s reluctance highlights a global split—bold adoption versus prudent skepticism. As the U.S. forges ahead, these nations double down on stability, betting that crypto’s volatility outweighs its promise.

What’s Next for Crypto in Reserves?

For Switzerland’s Bitcoin Initiative backers, the fight’s far from over. With one in nine citizens dabbling in crypto, grassroots pressure could yet sway the SNB. In Australia, a new government might pivot, but for now, regulation reigns. Will 2025 prove the naysayers wrong, or will Trump’s gambit set a new standard? Only time will tell.

Disclaimer

Investing in cryptocurrencies carries risks due to their volatility. This article is for informational purposes only and does not constitute financial advice.