According to recent reports, the Swiss government has rejected a proposed rescue fund of roughly $103 million meant to alleviate the severe impacts of COVID-19.
Local media reported on Wednesday that companies in Switzerland’s so‑called “Crypto Valley” did not receive loans totaling 100 million Swiss francs (approximately $103 million).
In the Zug‑based news outlet Tages‑Anzeiger, it was reported that a rescue plan drafted by Heinz Tännler to support blockchain startups failed to gain approval. Tännler serves as the finance director of the Swiss canton of Zug.
According to the report, the proposal called on the government to help crypto startups in the region obtain necessary funding to mitigate the effects of the COVID‑19 pandemic. The plan aimed to create a state fund that would distribute loans of up to 10 million francs to blockchain startups.
The approach would have provided loans through a sovereign wealth–style fund, with provisions allowing the loans to be converted into equity, the Tages‑Anzeiger said.
Zug’s finance chief had sought additional funds
Tännler had requested an expansion of the April stimulus package, which totaled 154 million francs.
Although the government package was intended to assist fintech companies as well, Tännler argued that the prior capital injection—about $158.5 million—was insufficient to support crypto startups. He said these firms were also suffering from the economic turbulence caused by the crisis.
The local report stated the proposed fund would have drawn on contributions from various sources and local stakeholders. Donors would have included municipal authorities, private investors, and federal guarantees.
The Swiss Blockchain Federation, citing a survey, warned that 79.8% of crypto startups based in Crypto Valley were “likely to become insolvent within six months.”
Out of 160 crypto companies surveyed, 88.2% said only state aid could prevent COVID‑related economic declines and resulting closures.
The report further noted that 68.3%—more than two‑thirds—of applicants for state loans did not receive the anticipated financing. As a result, companies must seek alternative sources of capital to survive.
Heinz Tännler is also a member of the Swiss Blockchain Federation. He warned that “Crypto Valley and the entire Swiss blockchain scene are existentially threatened by the pandemic and the related restrictions and uncertainties.”
The canton of Zug is regarded as particularly crypto‑friendly and as an innovation hub. Its distinctive regulatory approach attracted many blockchain startups and encouraged investment in the sector.