Zug Authorities Against Saving Crypto Valley
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May 25, 2020
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Switzerland's canton of the Zug is reportedly against saving the Crypto Valley that may face a wave of bankruptcies in the coming months due to pandemic side effects.

According to finews.com, the canton of Zug won’t provide a group of fintech/crypto firms also known as the Crypto Valley with a support package.

The Finance Chief of the regional government Heinz Taennler was previously trying to convince the federal government to create a separate fund for the valley of $102.7 million. The fund could consist of private investments, contributions from local authorities and federal guarantees.

However, Taennler reportedly failed to conclude a collective agreement with his colleagues as the majority of the regional government did not want to solve the problems that the crypto market is facing right now.

U.S. Concerned About Libra After Meeting Swiss Regulators

Instead, the federal government came to an agreement to allow fintech/crypto companies to apply for emergency loans from cantonal banks.

In July 2018, Zug carried out the first experiment on blockchain voting. It took place from June 25 to July 1 with local authorities saying that, despite the small number of participants, everything went fine. Access to the system was granted to 240 people, while 72 voted.

Meanwhile, iHodl reported that America's largest bank JP Moran Chase & Co sees threat for US geopolitical power and leadership in central bank digital currencies (CBDC).

According to Josh Younger, Head of US interest-rate derivatives strategy and Michael Feroli, chief US economist, the United States is the only country that risks losing "from the disruptive potential of digital currency" more than any other country in the world.

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