In a new paper released earlier this week, Swiss club Fintech Rockers advises for the creation of a national cryptocurrency and details the specifics of the project.
According to the document, the introduction of a national blockchain and corresponding cryptocurrency would “enable and bring the Swiss industries to the international forefront of the digital age,” bringing “significant and multifaceted benefits required for a modern economy.”
“Switzerland will become part of a group of leading digital nations, with blockchain and cryptocurrency bringing the Swiss market to new efficiency levels,” the paper says.
The initiative would be jointly carried by all Swiss cantons and would enable local as well as foreign entities and all people with an interest and/or business relation with Switzerland to hold genuine Swiss cryptocurrency and execute transactions via legal compliant smart contracts.
Swiss Crypto Franc
“The ‘Crypto Franc’ and the Swiss Blockchain will serve as the enablement for a prosperous healthy financial industry with advanced governmental systems, including e-government, national digital identities and distributed ledgers, helping our nation to adapt to the challenges of the digital age,” it says.
“Crypto Franc” could be implemented as a cryptocurrency on a hybrid blockchain with a protocol that focuses on low energy usage, high throughput, security and stability. By allowing for the deployment of smart contracts, the platform could be used for a variety of business and e-government purposes.
The Swiss National Bank would guarantee the exchange of Swiss Francs against “Crypto Francs” 1-to-1.
A dedicated working group comprising of a specialist team would be appointed to create the protocol. A national task force with representatives from government, business and industry and technical associations would provide advisory and guidance during the deployment of the blockchain and national cryptourrency.
The release comes on the heels of statements made by Romeo Lacher, chairman of the SIX Group that operates the Swiss stock exchange, encouraging for the creation of a blockchain-based national cryptocurrency.
“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 Times. An “e-franc” backed by the Swiss central bank would boost the local economy and provide the country with a competitive lead in digital technologies, Lacher said.
Venezuela and Marshall Islands
Around the world, countries such as Venezuela and the Marshall Islands have already deployed their own national cryptocurrency.
Venezuela’s oil-backed “petro” cryptocurrency raised US$735 million in the first day of its presale. Each unit of the petro is pegged to the price of one barrel of Venezuelan oil, according to Caracas. The country’s cryptocurrency regulator has said it hopes the petro will draw investment from Qatar, Turkey and other Middle Eastern countries, as well as European nations and the US.
Earlier this week, the Marshall Islands unveiled its very own “sovereign” cryptocurrency, which is set to supplement the US dollar as its legal tender. Legislators of the Pacific island nation passed the Declaration and Issuance of the Sovereign Currency Act 2018 on February 26.