Think Tank Pushes for Creation of a National Cryptocurrency in Switzerland
Avenir Suisse, one of the most influential think tanks in Switzerland, released a report urging the Swiss National Bank (SNB) to start working on a national cryptocurrency.
The report, called “Blockchain After the Hype,” proposes an economic model based on the blockchain. It suggests that the next step is to move forward with the creation of a “franc token” controlled by the SNB.
According to the new model suggested by Avenir Suisse, developing a stablecoin could convert Switzerland into a “blockchain nation.” The publication presents this goal as a way to upgrade the Swiss financial sector by enabling the trade of cryptoassets.
“It would facilitate tokenized securities trading if the National Bank and major players in the industry were to drive the development of a Swiss franc token,” the report reads.
Also, the centralized asset would be a door to blockchain use in other areas of the financial industry, mainly trade finance and new business models. The approach will help Switzerland move ahead of its peers in Europe while expanding global market possibilities.
“If it manages to position itself internationally as a pioneer in trading tokenized securities, Switzerland will be able to expand its relatively small capital market,” Avenir Suisse wrote.
More Action, Less Talk
The need for a cryptocurrency comes after a year of back and forth from the SNB about the impact of cryptocurrency and its plans to use distributed ledger technology to create trading platforms for tokens.
The publication also presses for the necessity of a framework for blockchain and cryptocurrency. The think tank recommends that laws must be made adaptable to these technologies.
“Essentially the law should be changed only in areas where it’s not yet DLT-compatible. But these changes have to be made as soon as possible.”, the think tank says.
In the mean time, the SNB’s stand towards crypto adoption is still on neutral ground after recently hosting the Conference on Cryptoassets and Financial Innovation.
Switzerland is known for its open policy on blockchain experimentation, but the think tank argues that the time for trials is over and that the institutions must move forward.
“Switzerland now has to take the next step in the development of DLT, morphing from the much-vaunted “Crypto Valley” into a fully-fledged DLT nation,” Avenir Suisse said.