National cryptocurrencies are, without a doubt, gaining momentum. A handful of countries are either already introducing related projects or toying with the idea of doing it. They may be controversial for several reasons, but these assets are also seeing their popularity increase for a reason.
In this case, one of Switzerland’s top think tanks, Avenir Suisse, released a report this week prompting the Swiss National Bank (SNB) to start laying the groundwork for a national cryptocurrency. For reference, a think tank refers to a group of experts that provide advice and ideas on particular political or economic situations or problems.
“Blockchain after the Hype”
The report published by Avenir Suisse is called Blockchain After the Hype. It talks about an economic model based on the world-changing technology, proposing the idea of coming up with a coin named “franc token,” which would be controlled by the SNB.
The innovative model presented by Avenir Suisse plans to turn Switzerland into a “blockchain nation,” whilst developing a stablecoin. The reasoning behind the think tank’s project is trying to improve the country’s financial sector by activating and enabling the trade of cryptocurrencies and related assets.
The report states that the project “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.” Purportedly, the centralized coin will be the avenue for other areas of the financial landscape implementing blockchain technology, including trade finance and new business models.
Expanding Global Market Possibilities
The plan would put Switzerland in the leading positions when it comes to blockchain use in the European continent. It also has enormous potential as a way to expand global market possibilities. The think tank explained that “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.”
Basically, Avenir Suisse wants the nation’s central bank to stop talking and start acting, demonstrating with facts that it is, indeed, willing to use and apply the blockchain technology at a national scale.
For more than a year, Swiss authorities, and more specifically, the SNB, has gone back and forth about the impact of cryptocurrencies and the projects to implement the distributed ledger technology in an effort to develop trading platforms for these assets.
Adapting the Law where Necessary
Avenir Suisse, additionally, pushes for the organization to come up with a set of rules for blockchain and crypto assets, urging the lawmakers to adapt the regulations to said 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.” Avenir Suisse says regarding blockchain and cryptocurrencies in Switzerland.
Despite Switzerland serving as the host of the Conference on Cryptoassets and Financial Innovation in recent days, the SNB’s stance regarding the adoption of cryptocurrencies remains neutral.
Avenir Suisse thinks that there is not more time for experiments (Switzerland has been open to testing the blockchain model,) and the moment to start acting is now. The country “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,” the group of experts observed.
By Andres Chavez