Stablecoins are seen as having the potential to complement regulated payment infrastructure with additional functionality and efficiency.
A planned legislative adjustment by the Swiss Federal Department of Finance is setting important foundations for Switzerland, particularly as a financial market and innovation hub.
The timing of this proposal aligns with international developments in stablecoins.
On 10 October, Swiss Stablecoin hosted a roundtable bringing together experts from business, politics, public administration, and academia to exchange knowledge.
The discussions focused on global trends in digital currencies and the increasing relevance and acceptance of fiat-backed stablecoins.
Their rise reflects both their diverse applications and growing regulatory integration.
Stablecoins are expected to become a component of future payment infrastructure. The roundtable considered how Switzerland’s position as a market location could be strengthened for this specific form of blockchain-based payment. In his opening remarks, National Councillor Benjamin Fischer highlighted this objective and the broader importance of an innovative financial centre.
The Boston Consulting Group provided an overview of international developments, noting that while US dollar-based stablecoins have dominated so far, Euro-based projects have emerged in recent months.
Significant growth in volume is expected, supported by increased legal certainty through regulation.
Discussions suggested that stablecoins will form a specific segment within the broader payment landscape.
Various forms of a “digital franc”, including a central bank digital currency or potential deposit tokens, could complement rather than compete with each other, depending on their design.
Technically, stablecoins can act as a bridge between decentralised systems and the regulated financial sector.
Examples of practical applications were presented by Sygnum, UBS, and PostFinance.
Sygnum highlighted demand from different customer groups, particularly in digital asset trading, and viewed a broadly accessible Swiss franc stablecoin as a valuable addition to reinforce Switzerland’s financial centre.
UBS illustrated, through tokenised securities, how digital payments like stablecoins could create faster, more secure, and more efficient financial markets, noting Switzerland’s early adoption through the 2021 DLT Act.
PostFinance identified potential uses for a CHF-backed stablecoin in the public sector, which could provide added value and differentiation for Switzerland.
Switzerland’s legislative framework for stablecoins is currently under review.
The forthcoming proposal from the State Secretariat for International Financial Matters is expected to provide a reliable foundation for issuing stablecoins, combining the country’s strengths in financial stability, legal certainty, and innovation.
Participants agreed that future regulation must address financial stability risks while enabling Switzerland to offer a sovereign, regulated product.
A regulated Swiss franc stablecoin presents opportunities to strengthen the long-term competitiveness of Switzerland as a financial and economic centre.
With stablecoin adoption expanding into new markets, careful monitoring and timely strategic measures are necessary.
The roundtable marked a milestone in Switzerland’s discussion on digital francs, as it considered the role of stablecoins within a regulated framework.
Around 60 representatives from finance, industry, public enterprises, authorities, and academia attended.
The roundtable was convened by Pascale Bruderer, founder of Swiss Stablecoin.
Founded in 2022, the organisation has developed a platform for the regulated issuance of a Swiss stablecoin in collaboration with banks.
Its ongoing objectives, reinforcing value creation, sovereignty, and innovation in Switzerland’s payment infrastructure, remain highly relevant and were underscored by the roundtable discussions.
Featured image credit: Edited by Fintech News Switzerland, based on image by diana.grytsku via Freepik
