In various countries there are discussions about a crypto version of the national fiat currency, which in the case for Switzerland this could be the “Crypto Franc”. We joined the Fintech Rockers writing the exposé Swiss national blockchain and cryptocurrency.
The exposé proposes the “Crypto Franc” in the context of a national blockchain which would serve as the digital backbone in the shaping mesh economy. We expect with a stable currency available on the blockchain that it will provide a catalyst effect of the economy. Such stable currency could be the “Crypto Franc” issues by the SNB directly pegged to the Swiss Franc.
“Such blockchain infrastructure, carried jointly by all Swiss cantons, will have an equivalent catalyst effect as the initial introduction of the railway system or the creation of the Gotthard tunnel during the age of industrialization. The Swiss national blockchain will enable local as well as foreign entities and all people with an interest and/or business relation with Switzerland to hold genuine Swiss cryptocurrency and/or execute transactions via legal compliant smart contracts.”
For Switzerland (and other countries) it is imperative to think about its future in a digital mesh economy. Such an envisioned blockchain would be an excellent foundation. There are ongoing debates about such a strategy but prompt and immediate decision and actions on this topic are required in order to stay a leading country in the global financial system.
“The introduction of Swiss cryptocurrency “Crypto Franc”, bound to the issued fiat Swiss Franc by the Swiss National Bank (SNB), revolutionizing digital payment capabilities. The national blockchain will enable and bring the Swiss industry(s) to the international forefront of the digital age.”
The exposé was mentioned under the title “E-franc pipe dream fails to arouse Switzerland” on swissinfo.ch recently.
2 thoughts on ““Crypto Franc” – key ingredient for a Swiss national blockchain”
While a crypto currency is pegged to a national fiat currency, it is no longer 100% pure crypto. It would become a digital form of fiat currency. The good things are people can still benefit from the underlying technologies, like blockchain and smart contracts.
The reasons why any fiat-currency-backed crypto currency, e.g. Crypto Franc, is not 100% crypto:
1) the supply is not defined by crypto algorithm primarily. Might be it will become something like M5, M6..of total money supply of a national currency. Central bank needs to lock same amount of CHF in a reserve in order to allow same amount of Crypto Franc in circulation in the blockchain pool.
2) the nominal value of Crypto Franc is relative clear, say 1CHF=1CryptoFrance. (i.e it does not has it own price). But the real market value may vary in a range. Central bank may need to manage its level by providing supply/demand in a regular basis.
In short, it is obviously a competition ongoing among the central banks of different locations which pushingthem to add cryptocurrency into monetary system.
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