[ad_1]
Switzeland embraces the blockchain
Blockchain and DLP (distributed ledge technology) observatories have certainly closely followed recent developments in Switzerland, where the government has just unveiled a complete legal framework to regulate blockchain at the national level.
This framework is decidedly progressive, with a much more open approach to blockchain applications than many other countries. It is very likely that this radical legislation will see Switzerland turn into a global refuge for blockchain and cryptocurrency, aided by its current status as a financial paradise.
The potential benefits of this legal structure are many, so dive into the current situation in Switzerland to see if this small country could really become the global epicenter of blockchain applications.
The current state of the game
It is perhaps not surprising that the main shareholder of blockchain developments is currently the gigantic Swiss financial sector, which is one of the largest and most diversified in the world. The parent company of the Swiss Stock Exchange, the SIX Group, is currently building a fully integrated commercial infrastructure for digital assets using blockchain technology and relying on digital master books.
Given the reputation that Swiss banks have to meet the needs of their clients, it should not be a shock to be the first in the world to offer business accounts for cryptocurrency companies. Important banks such as Swissquote also offer encryption options for customers with the full blessing of Swiss regulators.
This makes the country one of the most enthusiastic users of blockchain technology, with such an open arms approach completely unknown in most other countries. While regulatory bodies in other countries have begun to avoid cryptocurrencies, perhaps partly because of the collapse in prices of some cryptocurrencies in 2018, Switzerland considers them a significant component of the future of finance. With the bitcoin continuing to gain importance as a payment option for traders and investors, the country's financial sector leaders are eager to be considered as a change. The red carpet is being launched for companies linked to the blockchain and cryptocurrency, which are flocking to open stores in the Alps as a result.
It also helps Switzerland's financial infrastructure to be in a better position than most to implement a blockchain revolution. Central banking systems have historically been anxious to adopt the latest developments of fintech, and the reason why the last regulatory framework adopts such a lightweight approach to blockchain is in part the fact that such technology would not cause many disruptions in the first place. . In fact, Switzerland also has an important fintech startup scene, with four of its companies – Temenos, Avaloq, SIX and Crealogix – ranked among the top 100 in the world for 2018.
Beyond the banking system and the stock exchange, blockchain applications have also proved useful in many other ways. Leading insurance providers such as Swiss RE and Zurich Insurance have long since entered data into blockchain networks to counter fraud and improve operational efficiency. Blockchain is also used in the logistics and transport sector to improve the supply of food, medicine and fuel. The country also has one of the best healthcare systems in Europe, partly helped by the fact that the blockchain has been implemented to produce smart contracts between various treatment providers, in order to improve the accuracy of drug delivery and to stay at the step with patient records.
None of this happened overnight, obviously. Switzerland has long dominated global rankings in terms of technological readiness, positioning itself close to first place in both the World Digital Competitiveness Index and the Networked Readiness Index. The cities of Zurich, Geneva and Bern are also global hubs for fintech startups, while the Swiss government has enthusiastically supported innovative companies of all sizes at regional and national levels.
All this means that if a country intends to embrace blockchain technology, there are many more candidates than Switzerland.
What could it mean for other countries
The set of circumstances that led to the point are in many ways unique to Switzerland, but the implications for other countries are clear. If European countries like the UK and Germany want to maintain their status as key financial hubs, they may find themselves under increasing pressure to embrace blockchain technology within the industry and create a more welcoming environment for cryptocurrency traders.
This new legal framework clearly gives Switzerland a competitive advantage in the financial and commercial sectors, so it would not be surprising to see other countries follow the example over the next two years. Switzerland's strong international reputation can also convince the hard-pressed countries against the crypt, such as China and India, to deregulate and remove the existing controls that their respective central banks have put in place.
Above all, given that the coming years see Switzerland adopting the blockchain as a means of delivering better public services, governments around the world may see growing pressure to do the same once the results are clear for everyone.
By Chloe Sebastian
[ad_2]Source link
