Swiss Stock Exchange Chief, Romeo Lacher has declared that creating a blockchain-based “e-franc” would further cement the country’s status as a crypto-friendly nation and will surely boost the region’s economy.
In Favor of Digital Currencies over Fiat
In an interview with Financial Times, Lacher said that an “e-franc” supported by the Swiss central bank would immensely boost the local economy and the digital payment systems which are slowly replacing fiat money. In his words, “I believe there would be a lot of upsides, we would be strongly supportive.”
At a time when some governments are wary of bitcoin and other cryptocurrencies due to their high volatility and decentralized nature, Romeo Lacher sees blockchain-based digital money as an innovative tool for economic advancement.
While many central banks see cryptocurrencies as a threat to their existence, other forward-thinking firms are continually looking for ways to adopt the latest trends in fintech and integrate them into their operations. In January 2018, BTCManager reported on the Swedish Central Bank’s plans to create the e-krona, which would serve as a digital version of its national currency.
However, the more conservative Swiss Bank, in response to Mr. Lacher’s suggestion, stated that there was no immediate need for an e-franc since its fiat and cashless payment systems were all working perfectly.
It might interest you to know that Romeo Lacher, in addition to being the Chairman of the Swiss stock market also functions as the Chairman of SIX GROUP, which is owned by Swiss banks. SIX GROUP offers financial services which include cashless payment systems, share trading, and other services.
Lacher is not alone in his liberal stance on cryptocurrency. In January 2018, Swiss Economics Minister, Johann Schneider Ammann, speaking at a private crypto finance conference in St. Moritz stated that “Switzerland wanted to be the crypto-nation.” It’s pertinent to note that the country is home to many successful ICO projects. Also, the world’s number two cryptocurrency, Ethereum, is backed by a Swiss foundation.
Lacher hinted that following the crypto path is a good thing despite the risks involved. “I think the strategic direction is good,” he said, adding that:
“But it’s like going into [a] fog. You don’t know what you will see on the other side. Many mistakes will be made, but we will also learn a lot, and I am sure, we will be successful.”
Join the Moon-bound Crypto Trend or Become Obsolete
Experts have said that central banks who refuse to create crypto versions of their national currencies risk being left behind in the ever-evolving world of finance and the “wild west” private sector could gain complete control over payment systems.
In November 2017, Chairman of UBS Axel Weber said that Central banks need to develop cryptocurrency versions of their monies because it offers immense benefits to society.
For now, governments and central banks’ primary area of interest are in developing blockchain-based solutions. While it is a fact that virtual currencies enhances business processes and can make life easier, the hard truth remains that it could take several years before these blockchain-based currencies fully enter mainstream finance.