Switzerland exploring creating a Coercion backed cryptocurrency possibly called "e-franc"
On May 17, Reuters staff in a "3 min read" reports that the Swiss government may be compiling a SWOT, (strength, weakness, opportunity, threat) style analysis report on creating a crypto currency backed by the coercive might of the Swiss government. The article also asserts Sweden may have discussed a similar initiative, and that the lower house of the Swiss parliament's to back some entity titled Federal Council's request for a study.
It will be interesting if this goes anywhere. Not sure how Swiss money works or whether it is central bank type, which I suspect it is, if so, then their existing system of having the possibility of printing money out of no where--especially if their bank has done that before might not make crypto investors feel confident, but perhaps the coercive and state backing may counterbalance that. It seems one of the values in many cryptos is the definied limited supply that inhibits inflation.
The article also discusses Sweden's Riksbank which I will definitely be looking up and possibly writing a future article on. The article also cites Venezuelas Petro oil backed currency. Apparently the Bank of International Settlement in March may have made statements about the risks of central banks issuing their own cryptos.
Should the proposal be approved then the Coercion backed Swiss Finance Ministry will create a report, with no details on timeline yet. Cedric Wermuth vice president of the Swiss Social Democratic Party supports the study, which the "Swiss government, or Federal Council backed the proposal to look into it."Swiss National Bank governor Andrea Maechler may have asserted in April that non coercion backed central bank digital currencies might be better and less risky than those by central bankers.
Source
https://www.reuters.com/article/swiss-efranc/switzerland-seeks-study-of-state-backed-e-franc-cryptocurrency-idUSL5N1SO3BU
It's good to read your article. Thank you.
glad to hear some interesting times we live in
Good for them, however still centralized... which kind of defeats the purpose.
yea seems like just a good way to destroy the point of crypto
There's a few countries now considering having their own cryptos. I know China is still build or are in process of creating their own crypto also? But. I like the uniqueness of this one, Coercion backed cryptocurrency. It would be interesting to see how this turns out.
yea seems like it destroys the whole point to give bureaucrats control over monetary policy for a crypto and the ability to run money printing presses again
You're right @greenblossom. When money is no longer an issue, do most parents send their children to private or public schools? They same will hold true for crypto. No one will care about these centrally controlled coins, but at least they will help bring an end to the federal reserve slavery note of the US.
not sure if it spells the end seems the fed and all central banks will just transform most likely, at least until they no longer have coercion to enforce their claimed valuations.
It would be imprudent for countries to NOT do this kind of analysis at this point. Although it might be "crypto" it is still centralized and a far cry from the decentralized blockchain cryptos we normally think of when that term is used.
yea will be interesting what happens wiht it all
One more government-backed crypto? Gonna be centralized anyway, so why do they talk of cryptos?
seems like to cut into paypal and other existing digital payment processors for some reason? to help with making a cashless society
Fantastic post friend
thanks glad you liked it, hope the weekend goes well for you