Breaking News
Investing Pro 0
💎 Access the Market Tools Trusted by Thousands of Investors Get Started

Switzerland to Study Effects of an “E-Franc”

Published May 21, 2018 10:38AM ET Updated May 21, 2018 11:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Switzerland to Study Effects of an “E-Franc”

The government of Switzerland wants to look at the effects of establishing its own cryptocurrency, called the “e-franc,” according to reports coming from the Swiss parliament.

“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,” the Federal Council said in its proposal.

The cryptocurrency world took off so rapidly that it didn’t give governments enough time to fully assess whether this is a good thing or something detrimental. Some, like Vietnam, have not waited to study things thoroughly and just outright banned cryptocurrency trading. Others, like member states within the European Union, haven’t taken a solid position on these new coins, choosing instead to sit and wait for something to happen that requires their attention.

Switzerland has chosen to let its cantons decide what they want to do with them. As a result of this, Zug has become a cryptocurrency capital in the country. However, a national cryptocurrency is an entirely different ordeal. This would require merchants and banks alike to have to deal with them on a daily basis, something that the central bank of the country isn’t looking forward to.

Last month, the Schweizerische Nationalbank (Swiss National Bank) had only words of caution to share about the circulation of a national cryptocurrency.

“We are convinced that private solutions are better suited to meet the end user needs. Digital central bank money for the general public is not necessary to ensure efficient cashless retail payments,” said Andrea Maechler, a member of the bank’s governing board.

She added that for the very invisible advantages such a concept offers, the implementation of an e-franc would be “incurring incalculable risks in the area of financial stability.” In addition to this issue, the SNB would also have to act as a commercial bank rather than a lender of last resort.

“This would aggravate the bank run problem in times of crisis,” she added.

Even with proposals from the Federal Council to look into the subject, it’s unlikely that an e-franc would come to fruition considering that the SNB holds such a strongly cautious position with regards to this particular idea.

This article appeared first on Cryptovest
Switzerland to Study Effects of an “E-Franc”

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email