The Swiss government has requested a study to assess the risks and opportunities of launching an “e-franc” — a national cryptocurrency based on blockchain technology.
Details
The Federal Council, the seven-member Swiss executive body that governs the Confederation, endorsed a call from Cédric Wermuth for a formal government study into the feasibility of issuing a state-backed digital currency. Wermuth, a 32-year-old Swiss politician and vice president of the Social Democratic Party, formally proposed the measure.
This initiative comes as several other countries actively explore central bank–backed digital currencies, including China, Singapore, Canada, Israel and the United Kingdom. In support of the young politician’s request, the Federal Council made the following remarks, as reported by Reuters:
“The Federal Council is aware of the major legal and monetary challenges that the use of an e-franc would entail. It requests that the proposal be adopted in order to examine the risks and opportunities of the e-franc and to clarify the legal, economic and financial aspects of such an instrument.”
The proposal is under consideration
The decision to support the Federal Council’s request for a study now rests with the lower house of the Swiss Parliament, the National Council. If approved, the Swiss Finance Ministry would be tasked with conducting the research and ultimately producing the government-backed study. This development is notable for Switzerland, a country widely regarded as one of the most crypto-friendly jurisdictions for cryptocurrencies and initial coin offerings.
Earlier in the year, the Swiss Financial Market Supervisory Authority (FINMA) issued guidelines on fund managers’ adoption of collective investment schemes, and in January the Swiss economy minister Johann Schneider-Ammann urged the country to become “the crypto nation.” He encouraged Switzerland to take a more proactive role in the sector through local initiatives such as those in the canton of Zug — the Swiss city often referred to as “Crypto Valley.”