A national cryptocurrency has been an idea that many countries have either played with or are playing with at press time. Now, Switzerland is joining the mix and considering the prospects of becoming a potentially “cashless” environment.
Switzerland Heads into Digital Territory
The organization “pulling the strings” so to speak is Avenir Suisse, one of the largest and most influential think tanks in the country. Leaders of the think tank released a report telling the Swiss National Bank (SNB) that building a national cryptocurrency would do wonders for the region both technologically and financially.
The document explains the following when it comes to creating a national cryptocurrency for Switzerland:
It would facilitate tokenized securities trading if the National Bank and major players in the industry were to drive the development of a Swiss franc token… If it manages to position itself internationally as a pioneer in trading tokenized securities, Switzerland will be able to expand its relatively small capital market.
The report is titled “Blockchain After the Hype,” and suggests that blockchain technology could potentially bring Switzerland out of the “dark ages” and escort it into a future that would allow it to compete with its European neighbors. The only way to ensure this, according to the report, is through the creation of what it’s calling a “franc token” that the SNB controls.
The situation creates something of a two-sided coin in many ways. On one hand, a national cryptocurrency would ultimately legitimize not only the cryptocurrency industry but would potentially lead to Switzerland becoming a leading nation in terms of finance. While Switzerland is already there (after all, everybody wants to get their hands on a Swiss bank account), this could move it even higher and further up the financial ladder.
In addition, the creation of a national digital asset for Switzerland would ultimately cause many neighboring regions to follow suit, building the crypto industry up to new heights.
At the same time, a coin created and controlled by the SNB would mean that the currency will likely be centralized, which completely goes against the original ideals and goals of crypto. Many people will likely be unable to gain access to it granted they do not possess the credit or other tools necessary to sustain a solid position in the monetary space.
The good news is that the franc token would ultimately be a stable currency, meaning it will be tied to actual physical francs. Thus, it will not be prone to the same volatile nature often witnessed with mainstream digital coins such as ether tokens, bitcoin or Litecoin.
Playing with the Big Boys
The think tank comments:
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.