The Swiss government will consider it’s options for creating a state-backed cryptocurrency. According to a Reuters report, the Federal Council of the Government of Switzerland requested a report into the risks and opportunities of launching its own cryptocurrency.
Lawmaker Cedric Wermuth, vice president of the Social Democratic Party, proposed the study which the Federal Council put forward. The council’s statement read:
“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.”
In line with government procedures in Switzerland, the parliament will approve the proposal before the Ministry of Finance conducts the research. The government did not release a timeline for the study.
Following the global interest in cryptocurrencies, government and private institutions have sought to adopt the best blockchain and cryptocurrency strategies. The first point is usually to get a better understanding of the space and how it would affect the institution.
Cryptocurrency in Switzerland
The Swiss National Bank is not keen on cryptocurrency and even less receptive to the idea of a national cryptocurrency. Last month, a board member of the bank, Andréa Maechler, echoed this view. He said that private-sector cryptocurrencies like bitcoin were less risky than nationally-issued versions. One of the biggest commercial banks in the country UBS bank opted not to enter the cryptocurrency market; the chairman calling the transparency of digital currency transactions into question.
Sweden with the e-krona, Russia with the cryptorubble and Venezuela with the Petros are countries which have considered state-owned cryptocurrencies in the past. While Sweden and Russia seem to have shelved such plans, Venezuela went ahead to launch the Petro.