The Swiss legislator and Vice-President of the Social democratic party, Cedric Wermuth (Cedric Wermuth) sent to the Federal Council of the Swiss government requests to conduct research on the risks and benefits to issue a national digital currency e-franc. The Council forwarded the request to the lower house of the Swiss Parliament, which will decide whether to support the initiative of Vermouth.
«The Federal Council informed about the serious aspects, both legal and monetary, to associate to the use of e-franc. The Council requested to consider the proposal of Vermouth to assess the risks and opportunities of e-Frank to define the legal, economic and financial aspects», — informs the Federal Council.
Cryptocurrencies are carefully analyzed, legislators and international bodies regulirime, who note the rapid growth of technology. The digital currency uses high levels of encryption and technology of the blockchain, designed for quick and anonymous transfers that do not require Central processing.
Some countries had already announced that it carried out a similar study on the economic viability of launching its own digital currency supported by the state. For example, the Swedish Riksbank, said that «electronic crown» may help to reduce the use of cash and help make the payment system more reliable.
Existing cryptocurrencies prevents extreme volatility, frequent break-ins cryptocurrency exchanges and doubts about the long-term viability.
In March of this year, the international Bank has warned Central banks that before to release their own cryptocurrency, it is necessary to conduct a major study to assess potential risks and other adverse «effects» that can have a negative impact.
If in Switzerland, the offer of Vermouth is approved, the study will conduct the Swiss Ministry of Finance. However, the timing of the decision is not reported.
«The Swiss national Bank has so far been cautious in this matter. The digital currency of the private sector are still better and less risky than any version that can offer the Central Bank», — said the member of the governing Board of the Swiss National Bank (BNS) Andrea Mehler (Andrea Maechler) last month.