The Swiss government, through its executive body, the Federal Council, approved the admission of a request for a study establishing the feasibility, advantages, and challenges of a state-owned cryptocurrency, the e-franc or “Cryptofranc”. This request was made by Socialist Party MP Wermuth Cedric, back in March.
The viability of the e-franc or “Cryptofranc”, as it has been called, is one of the objectives of this study requested from the Federal Council by the Socialist deputy Wermuth Cedric, and which must be prepared by the Finance Minister, if approved by the lower house of the Swiss Parliament.
In the application, entitled “Establishing a report on the feasibility and challenges of creating a ‘Cryptofranc’,” Wermuth Cedric refers to the different states or central banks that are considering the possibility of creating electronic currencies, including the Bank of Sweden.
Cedric points out that this interest of the states has been inspired by the growing boom in means of payment and cryptocurrency and mentions several challenges around them, such as the “digital divide” between a minority that has access to them and a large majority that does not have access to their benefits.
He also mentions the volatility of the crypto market or the future of transactional infrastructure, among other challenges.
Switzerland takes big steps towards becoming a “Crypto Nation” by considering launching its own state-owned cryptocurrency
In its reply, the Federal Council notes that it is closely following the growing interest in cryptocurrency and the discussions on “Cryptofranc”.
The Council also reported on the creation of a working group including the Swiss Financial Market Supervisory Authority, which had been responsible for the guidelines governing the Initial Offers of Coins (ICO) within the country.
The Councillor in charge of the Council’s Finance Department, Ueli Maurer, is appointed for the analysis of the proposed request, although no deadlines are set for a presentation of the study on the Swiss state-owned cryptocurrency.
In January of this year, Johann Schneider-Ammann, an advisor to the Department of Economics, Education and Research, said he would like to see Switzerland as a “Crypto Nation” in 10 or 20 years’ time, although he later went back, acknowledging that it was a mistake to speak in such terms of the country and, in a very diplomatic manner, offered an alternative, namely, a “Blockchain Nation”.
