The Swiss government has requested a study into the potential benefits and drawbacks of the so-called “e-franc”, the country’s state-backed cryptocurrency, Reuters reported yesterday. The Swiss parliament’s lower house must now come to a decision as to whether it will back the request. If the proposal is approved, the Swiss finance ministry will produce a study, although it is unclear if a timeline has been set for its release.Lawmaker Cedric Wermuth, vice-president of the Social Democratic party, called for the study. In its response, the Swiss government, or Federal Council, supported the initiative while acknowledging potential hurdles:
“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 said. “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.”
In February, Venezuela launched the world’s first state-owned digital currency, “the petro”. The Maduro government has encouraged its adoption and use, while the Trump administration has banned its use among Americans. Major developed economies have so far steered clear of digital currencies, citing extreme volatility, sophisticated hacks and doubts about long-term viability.
By Nadya Astam