Switzerland: the future is to be a Crypto Nation?

Board executive of the Swiss National Bank (SNB) Thomas Moser said that cryptocurrencies and blockchain innovation are too primitive, making it impossible to consider issuing a state-backed digital currency, local news outlet swissinfo.ch announced June 21.

Talking at the Crypto Valley blockchain conference in Zug, Moser compared blockchain in its current condition and the pointless development of compact discs (CDs):

“Something similar has to happen with bitcoin. People will only switch to something new if it works better or is cheaper.”

Moser, who was designated to the board of Switzerland’s national bank in 2010, conceded that blockchain innovation has potential, yet just when it appears to be extremely unique from what it does today. Given the present condition of innovation, Moser can’t imagine an “e-franc” at any point soon.

At the same conference, Johann N. Schneider-Ammann, the head of Switzerland’s Department of Economic Affairs, has said that blockchain technology will undoubtedly penetrate the entire economy of Switzerland and make a global impact that is as big as that of the internet.

Ammann noted that Switzerland has already evolved into a leader in blockchain technology and intends to continue supporting the cryptocurrency sector and companies within it. During his speech at the Crypto Valley Conference in Zug, Ammann added that the World Wide Web may have been invented in Geneva, Switzerland, but due to impractical policies and insufficient developments, the majority of internet work was done elsewhere.

The cryptocurrency markets have experienced exponential growth over the past few years, with billions of dollars injected into the industry on a yearly basis. Since 2016, banks are said to have spent over $2 billion to develop blockchain-related solutions.

Still, despite the resources and capital that are available to developers and blockchain projects, blockchain developers are currently working on solving unprecedented problems related to cryptography. Implementing solutions like Sharding and Plasma, which are expected to increase the transaction capacity of the Ethereum network to a million transactions per second, take more than simply resources and capital.

Hence, Ammann noted that it is important to provide a platform for blockchain projects to realize their long-term visions and commercialize this revolutionary technology, as blockchain adoption cannot be done overnight.

According to an investigation by blockchain meeting BlockShow Europe 2018, the nation was positioned number one in a list of the best European nations for launching a blockchain organization.

A month ago, the Federal Council of the Government of Switzerland asked for a report regarding the dangers and chances of presenting a government-backed digital currency. The plan to develop a national cryptocurrency was proposed in February by Romeo Lacher, administrator of the Swiss stock trade SIX. He stated, “an e-franc under the control of the central bank would create a lot of synergies – so it would be good for the economy.”

For many years, blockchain projects and initial coin offerings (ICOs) have acknowledged Zug to be the blockchain capital of the world, due to its friendly regulations. In his speech, Ammann confirmed that Zug will continue to operate as a supportive platform for blockchain projects.