Venezuela’s Petro has been in circulation for a while now, and Iran and Russia have both floated idea of state-backed currency, so the concept at least is nothing new. However, the only currently-operational crypto backed by a government is in Venezuela, where crypto is seen as a way to circumvent financial sanctions. The news that the Swiss government is looking into the possibility of an e-franc is, therefore, wildly different, as this is the first example of a major, secure global economy considering its merits.
Very Early Days
There is no guarantee though, that such a report would even happen – yet. The request for a report must first be granted by the Swiss parliament, and there is, as yet, no stipulated deadline for the report to take place. There has been cautious backing so far from the Federal council.
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.
Meanwhile, similar discussions have clearly been taking place in Sweden. The Riksbank are thought to have been considering an e-crown, which they believe could help to make payments more secure in a country where, like mot of the rest of the world, cash use is declining rapidly in favour of digital payment options.
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