What has been happening around Blockchain Technology and Cryptocurrencies this week? The most relevant local and international developments as well as appealing background reports in a pointed and compact way in retrospect in our weekly review.
The ratification of the new Swiss blockchain legislation is in full swing. Last year, the bill was approved by the Federal Assembly without a dissenting vote, and was expected to come into force in mid-2021. However, according to a decision by the Federal Council, the first part of the legislation is already effective as of this Monday. This will allow, among other things, companies to issue their shares via a blockchain and represent them as cryptographic tokens. Furthermore, the blockchain technology simplifies processes in the area of custody and administration of equities. The necessary legal certainty for implementing the new technology in existing processes of the financial infrastructure puts Switzerland in a promising starting position. Luzius Meisser, expert of the Swiss Blockchain Federation, explains what the bill will actually enable and spotlights the relationship with the legislation of the European Union.
Project Helvetia" is an experiment in the field of tokenization. It is a collaboration between the Bank for International Settlements (BIS), the Swiss National Bank (SNB) and the financial market infrastructure operator SIX. The project has demonstrated in a real-world environment that it is feasible to provide central bank money for the settlement of securities transactions using new technologies. Not only is it possible to link existing systems, but a new type of central bank money - a digital central bank currency (CBDC) for wholesale trading - could also be issued. An option which, according to SNB crypto expert Thomas Moser, is quite realistic. It remains unknown when this "digital Swiss franc" would be introduced. However, it is obvious that the SNB is dealing with the topic seriously.
Blockchain technology offers a wide range of use cases. Johannes Schmitt, "director of banking" at crypto exchange Kraken, sees enormous potential in establishing a fair and borderless financial system. The largest untapped market in the world, according to Schmitt, is the billions of people that don't have a bank account. Cryptocurrencies can provide access to a decentralized and permissionless financial system. Bitcoin has become an accepted asset class among institutional investors in recent years, and the Ethereum ecosystem has spawned hundreds of new projects. Nevertheless, we are still at the very beginning and more needs to be done for cryptocurrencies to unleash their true potential, according to Schmitt.
Significant news and happenings in the crypto ecosystem are piling up. This increases the risk of missing some of the most important events. In addition to the weekly summary, CVJ.CH is therefore adding a supplementary monthly format to its repertoire. In cooperation with research experts from crypto specialist 21 Shares AG, the highlights of the sector will be reflected. In January alone, quite a bit has already happened.
Furthermore: At the beginning of the year, "predictions" for the upcoming year often pop up. Pascal Hügli goes a step further and takes a look at the next 10 years. The possible future of our financial system is highlighted, especially in connection with the new possibilities of digital currencies. In the critically minded outlook, we will see strong interventions in capital flows and the Modern Monetary Theory (MMT) will be put into practice. For blockchain enthusiasts, however, there is a glimmer of hope.
Selected articles in the weekly review:
The first part of Switzerland's new blockchain legislation has received the green light from the Federal Council and came into force this week. Luzius Meisser, expert at the Swiss Blockchain Federation, on the emerging opportunities of digital securities.
The Helvetia project has demonstrated within a realistic environment, how central bank money can be made available for the settlement of securities transactions.
How will blockchain technology affect our lives? An interview with Johannes Schmitt, Director of Banking at the crypto exchange Kraken.
January turned out to be anything but quiet in terms of new events in the field of crypto assets.
At the beginning of the year, "predictions" for the upcoming year often appear. Pascal Hügli goes a step further and takes a look at the next 10 years in terms of our financial system and the role of digital currencies.
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