Swiss e-franc Crypto Development
Switzerland joins a growing list of governments and institutions that have sought to adopt the best blockchain and cryptocurrencies strategies. The Federal Council of the Government has commissioned a study that will look at the effects of establishing the country’s first cryptocurrency dubbed e-franc.
Talk of a government backed cryptocurrency was first proposed by lawmaker Cedric Wermuth, of the Social Democratic Party. Initially the government backed the proposal while acknowledging that it would face a lot of hurdles. The Federal Council is aware of the major challenges, both legal and monetary, which would be accompanied by the use of an e-franc. 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.
A study on the potential impact of the e-franc comes at a time when the country’s central bank, The Swiss National Bank, has shown how less receptive it is to the idea of a national cryptocurrency. Governor Andrea Maechler, has already warned that private sector cryptocurrencies like Bitcoin (BTC) are less risky than nationally issued versions.
One of Switzerland biggest commercial bank opted against venturing into the cryptocurrency market, citing a lack of transparency when it comes to digital currency transactions. The sentiments essentially raise questions as to whether e-franc will ever see the light of day amidst the stance.
Switzerland is not the first country to try and evaluate the viability of launching a state-backed cryptocurrency. A number of countries such as Venezuela have gone as far as launching one. Talk of State-backed cryptocurrencies appears to be gaining momentum as regulators look to address the deficiencies of the likes of Bitcoin.
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