‘Switzerland needs national cryptocurrency’: think tank
One of Switzerland’s most prominent business think tanks is calling on the central bank to start issuing its own cryptocurrency. Avenir Suisse believes this is an essential step along the path to creating a new blockchain economic model.
This content was published on
2 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
In a report entitled “Blockchain After The HypeExternal link”, Avenir Suisse argues that it is time for the talking to stop and for the SNB to take the plunge into a centrally issued digital currency. The reasoning is that the Swiss financial sector, including the country’s stock exchange, has for some months been forging ahead with plans to create DLT platforms to enable the trade of tokenised assets.
“If it manages to position itself internationally as a pioneer in trading tokenised securities, Switzerland will be able to expand its relatively small capital market,” states Avenir SuisseExternal link. “It would facilitate tokenised securities trading if the National Bank and major players in the industry were to drive the development of a Swiss franc token.”
“Stablecoin”
But unlike decentralised cryptocurrencies such as bitcoin, this proposed model would give the SNB control over the digital token. It should also be pegged in value to existing currencies – a so-called “stablecoin” – argues the think tank.
DLT acts like a digital accountancy software that automatically keeps track of transactions and who owns assets contained within its system. This would allow token holders to trade directly with each other without the need for banks, accountants and other intermediaries to balance the books. The big selling point is that it would save time and cost by stripping out third parties in transactions.
Avenir Suisse is enthusiastic about the potential of DLT, particularly for securities trading, wealth management and trade finance. But the body appears less keen on bitcoin.
“Switzerland now has to take the next step in the development of DLT, morphing from the much-vaunted ‘Crypto Valley’ into a fully-fledged DLT nation,” it stated.
More
More
Explained: The technology behind bitcoin and blockchain
This content was published on
To some, it’s a load of hot air. Others see a revolutionary technology that will transform the way we exchange nearly everything of value.
Swiss authorities announce cost-cutting in asylum sector
This content was published on
The government notably wants to improve integration into the labour force, particularly for people with protection status S.
Various leaders confirm participation at Ukraine peace conference
This content was published on
The presidents of Poland, Finland, and Latvia and the prime ministers of Spain and Belgium will be at the Swiss-hosted talks in mid-June.
This content was published on
In the winter season up to April 2024, railway and cable car operators ferried 3% more visitors compared to the previous winter, and 5% more than the five-year average.
Rhine flooding: Swiss to invest CHF1 billion with Austria
This content was published on
As part of an international agreement with Austria, the Swiss government wants to pump CHF1 billion ($1.1 billion) into flood protection measures along the Rhine over the next three decades.
Swiss government proposes CHF10 million UNRWA donation
This content was published on
After months of debate, Switzerland plans to give CHF10 million ($11 million) to the UN agency this year, rather than the CHF20 million initially foreseen.
Swiss study: insects mainly migrate at midday and dusk
This content was published on
A study led by the Swiss Ornithological Institute in canton Lucerne is helping to better understand the movement patterns of migratory insects.
Red Cross: 22 staff killed in Middle East since October
This content was published on
The Red Cross and Red Crescent network in Gaza and Israel has lost 22 staff members since last October, the Swiss Red Cross (SRC) said on Wednesday.
Dortmund’s Kobel is first Swiss goalie in Champions League final
This content was published on
Borussia Dortmund’s Gregor Kobel has achieved history by becoming the first Swiss goalkeeper to reach a Champion’s League final.
University students in Switzerland join Gaza protest wave
This content was published on
Pro-Palestinian activists occupied university buildings in Lausanne, Geneva and Zurich on Tuesday, widening the protest movement in the Alpine nation.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Digital currencies too early for Swiss central bank
This content was published on
Cryptocurrencies are currently far too early stage for the Swiss central bank to consider issuing a digital franc, says SNB board director Thomas Moser.
This content was published on
Romeo Lacher, chairman of the SIX GroupExternal link that runs the Swiss stock exchange, recently added his voice to the debate by advocating such a virtual currency. “An e-franc under the control of the central bank would create a lot of synergies – so it would be good for the economy,” he told the Financial…
Cryptocurrencies could “discipline” monetary system
This content was published on
Bitcoin must iron out some fundamental design flaws before it can operate as a viable alternative to fiat currencies, Ammann believes. But if would be “generally positive” if the traditional financial system can eventually be challenged by the new digital currency competitors. Bitcoin is currently the most well-known cryptocurrency next to Ethereum, Ripple and Litecoin.…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.