On Tuesday, July 3rd, the roadblocks positioned by Switzerland’s financial institutions to halt the advance of Bitcoin could be swept away when the Swiss Central Bank, the Federal Government of Switzerland and the Swiss Financial Supervisor convene in an attempt to make their tiny but massively influential country one of the most crypto-friendly in the world.
The alpine country is already an established destination for traditional banking, with a large number of global and local institutions having set up their operations here. There already exists a mature banking ecosystem, infrastructure and necessary talent pool for optimized banking services in the region.
Besides, their reputation precedes them as an exclusive banking system, which fiercely protects the identity of their account owners. Hence, cryptocurrency‘s philosophy is already a part of the banking culture in Switzerland. Thus, all that the country’s administrators will have to do is to allow banks to accept the digital currency processes.
The new companies, largely clustered around Zug, a small lakeside town near Zurich, have instead turned to banks in Liechtenstein and elsewhere for banking services. Heinz Tännler, finance director of Zug canton, said he expected Swiss politicians and regulators to remove obstacles in coming months, allowing cryptocurrencies and ties companies to operate with banks in the same way as other companies.
“We hope to clarify relationships by the end of the year at the latest,” he told the Financial Times. “Time is pressing — other jurisdictions such as Malta and Singapore are very active and making a lot of effort to attract these companies. The lack of access to bank services is a significant competitive disadvantage.”
If Swiss banks begin to accept cryptocurrencies, then they will be on par with the pro-crypto environment in places like Singapore and Malta. These nations have built the ecosystem for such transactions and are attracting businesses in large volumes.
The laws there are custom-made for the easy use and adaptation of cryptocurrencies in their economies. On the other hand, the current banking laws in Switzerland are limiting such adaption as they follow traditional transaction system and thus fail to match the expectations of crypto industry.