Switzerland Stablecoin Adoption Switzerland

Swiss Bankers Association proposes deposit tokens to develop digital economy

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The Swiss Bankers Association released a white paper on how Swiss banks can support the development of the country’s digital economy.

A Swiss franc “joint” deposit token is the solution the group settled on. Stablecoins have limited penetration in the Swiss financial system, even as end-to-end digitization is becoming more common in business models, and no Swiss stablecoins are accessible by the general public, the paper said.The authors of the paper suggested that a variety of stablecoin, that is, a deposit token “issued by regulated and adequately supervised intermediaries,” issued and redeemed by smart contracts and denominated in Swiss Francs.

The token could be designed as a ledger-based security, rather than a set of instructions, to provide it with the greatest potential.The paper identifies three design options for a deposit token.

These are standardized tokens that any commercial bank can issue with a uniform standard, colored tokens that are issued by commercial banks to any standards they choose and joint tokens that are issued by a licensed and supervised special purpose vehicle consisting of participating banks.

Read more on cointelegraph.com
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