Switzerland Stock Exchange (SIX) has asked the country’s central bank (SNB) to issue a stablecoin – a digital version of the Swiss Franc.
According to reports by local media Swissinfo, SIX pitches the crypto asset as a perfect currency for settling cross-border payments and trading on its new digital securities platform. The exchange also explains that users of its upcoming digital securities exchange (SDX) will be able to swap fiat currency for the new stablecoin.
The exchange states:
SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenized CHF in SDX. The value of tokenized CHF would be pegged 1:1 with the CHF at all times. We most definitely favour a central bank issued stablecoin.
This new proposal though subject to a final decision, is reportedly being considered by the Swiss National Bank as its benefits will curb current hassles experienced using fiat currency.
The Switzerland Stock Exchange is owned by a consortium of Swiss banks and looks to continue its innovations around cryptocurrency, blockchain and trading of digital versions of stocks, bonds and other securities.
From becoming home to the Crypto Valley Association, to launching a blockchain-platform product for SDX as well as proposals for Blokckchain voting, Switzerland looks to maintain their domination of financial services and innovation; with the full support of its government.
More Financial Institutions Eye Cryptocurrency
On a global scale, financial institutions seem to fancy the idea of issuing stablecoins and use of blockchain in finance. However, cryptocurrency maximalists view this as a basic ‘centralized’ cryptocurrency which goes against the crypto decentralization metric.
It is yet to be seen if this rush to innovate is pegged to the growing popularity of cryptocurrencies and advantages associated with it or a move by these institutions to take a share of the emerging crypto market.