The Swiss National Bank’s Take on Cryptocurrencies: A Reality Check

The Primitive State of Blockchain Technology

Thomas Moser, a board director of the Swiss National Bank (SNB), recently stated that while there’s potential in cryptocurrencies and blockchain, we’re nowhere near the sophistication needed for state-backed digital currencies. He aptly likened the current state of blockchain to the outdated compact discs (CDs) – which, let’s be real, are about as useful these days as a floppy disk at a tech expo.

Side-by-Side with Bitcoin

Moser emphasized that for people to transition from traditional currency or systems to something new, that new something needs to prove itself as better or cheaper. He threw down the gauntlet: “Something similar has to happen with bitcoin.” The current framework is like trying to sell a 2023 model car while everyone else is still revving their engines in ’95 Corvettes.

A Long Road Ahead for the e-Franc

Looking past the blockchain hype, Moser expressed skepticism about the imminent arrival of the suggested ‘e-franc.’ He believes that any prospective digital currency needs to vastly improve in terms of utility and functionality. Until then, Swiss citizens might as well keep their francs close.

Education is Key

Another big voice at the Crypto Valley Blockchain Conference was Johann N. Schneider-Ammann, a member of the Swiss Federal Council. He echoed Moser’s cautious approach but raised the point that blockchain education is vital as it permeates the economy.

• Expand educational programs about blockchain technology.
• Understand risks and benefits to foster a responsible innovation environment.

After all, you can’t very well navigate terrain you haven’t explored!

The Future Prospects of Blockchain in Switzerland

Switzerland is often touted as a haven for blockchain and cryptocurrency innovation, with the thriving “Crypto Valley” in Zug leading the charge. The country ranked number one for launching blockchain enterprises in Europe according to BlockShow Europe 2018. The Federal Council even took a proactive step last month requesting insights on the risks and benefits of instituting a government-backed digital currency.

Romeo Lacher, chairman of the Swiss stock exchange SIX, laid the groundwork for this dialogue, positing that a digital franc managed by the central bank could pave the way for great economic synergies. Just imagine saving at a café and getting your change back in digital coins instead of crumpled bills – the future is indeed promising, as long as blockchain evolves past its “primal” phase.