Reuters reported Switzerland is formally considering the possibility of a state-backed cryptocurrency. Its government has asked legislators commission a study on the pros and cons of a Swiss “e-franc.”
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Switzerland Considers State Backed E-Franc
Switzerland’s Federal Council explained why it was asking for a formal study of state backed cryptocurrency. “The Federal Council is aware of the major challenges, both legal and monetary, which would be accompanied by the use of an e-franc. It asks that the proposal be adopted to examine the risks and opportunities of an e-franc and to clarify the legal, economic and financial aspects of the e-franc.”
Andréa Maechler
That appears to be quite a turnaround for the Swiss. As little as just over a month ago, its central bank was making statements about crypto’s inherent instability. “Digital central bank money for the general public is not necessary to ensure an efficient system for cashless retail payments. It would deliver scarcely any advantages, but would give rise to incalculable risks with regard to financial stability,” warned Andréa Maechler of the country’s national bank.
Nevertheless, the next step in the process involves parliament’s lower house. It will ultimately decide whether the request moves forward. Most countries considering the idea openly have sought state backed crypto as a means to run afoul of economic sanctions or as a way to deaden domestic enthusiasm for a currency beyond government control. Sanctions are not an issue for Switzerland, and the government has been rather open to the crypto revolution, comparatively.
Not the First, Not the Last
Venezuela is the most recent and notorious example of state backed crypto, and the only country to have implemented
