Switzerland Considers Own Crypto Franc

The government is investigating the risks and benefits of a state backed cryptocurrency.

by Kyzmoff
18 May • 1 min
In News
The Swiss Government requested yesterday a report investigating the potential risks and benefits to issuing a state-backed cryptocurrency, so called e-Franc. The lower house of the Swiss parliament must now approve the request before it is moved on further.

“The Federal Council is aware of the major challenges, both legal and monetary, which would be accompanied by the use of an e-franc,” according to an official statement. “It asks that the proposal be adopted to examine the risks and opportunities of an e-franc and to clarify the legal, economic and financial aspects of the e-franc.”
 
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Switzerland is the country with the largest amount of ICOs daily in Europe. 

 

If the proposal goes through, a study will be drafted by the Swiss finance ministry but no timing has been given on when it would be published. On a similar note, China has announed the launch of a monthly crypto index addressing the lack of independent analysis of crypto and blockchain as a guide for governments, enterprises, and research institutes worldwide.
 
Currently, there is only one cryptocurrency backed by a central government and that is the Venezualian Petrocoin. If Switzerland rolls out the "e-franc" project, it might become the second country in the world to run its own digital currency. But given the insufficient analytical basis on the subject and the not so well received Petrocoin, the Swiss might stall their actions until circumstances are right. This could also be a solution to issues like the chronic volatility of the cryptocurrency market and the need for better understanding of the sector at regulatory level. Switzerland-crypto-hub-europe2
Switzerland is also the home country of the largest ICOs in the world followed by the US