The Historic town of Zug Switzerland has long been a destination for nature seekers and foodies alike, but situated along the meandering pathways and lakeside restaurants are about 27 thousand companies that call the historic city home. Regarded as one of the country’s economic powerhouses, Zug’s incredibly low tax rate and friendly approach to business has made it home to many famous corporations. Now Zug is making a name for itself in the crypto world, recently earning the nickname “Crypto Valley” as the lakeside town is now home to a wide swath of crypto related firms.
Switzerland as a whole has long been heralded as one of the world’s friendliest countries in relation to cryptocurrencies. Following in the footsteps of Switzerland’s early adoption towards cryptocurrencies, a nonprofit think tank founded in 2017 that studies the social and financial transformations and impacts of Bitcoin and blockchain technology, 2B4CH, has recently proposed that Bitcoin be included in the federal constitution of Switzerland as a reserve asset. Upon approval, the proposition would enact the following changes to article 99 clause 3 of the Swiss constitution, “The Swiss National Bank shall create sufficient currency reserves from its revenues; part of these reserves shall be held in gold and Bitcoin.”
2B4CH will begin collecting signatures for their proposal shortly and the group is forecasting widespread support from both the Swiss public and government. Estimates show that 100,000 Swiss citizens hold Bitcoin, and the government has recently made several friendly moves targeting cryptocurrencies, including being the first country to bring about laws to regulate crypto activities, further expanding their crypto-friendly approach.
While 2B4CH’s proposal is ground-breaking, it’s not a first for the country. In 2018, 500,000 citizens cast their vote in support of a decentralized financial system separated from the banks instead of supporting the traditional financial system. In a surprise move, the only ones to loudly voice their displeasure with the 2018 outcome was the Swiss Banking Association.
The Swiss public have been loud and upfront about their support for cryptocurrencies and displeasure with things as they are for several years, and recently some of the banks have begun to listen by introducing crypto trading to their clients. In 2020, the Swiss Financial Market Supervisory Authority (FINMA) approved the Crypto Market Index Fund, the country’s first investment fund allowing exposure to cryptocurrencies via traditional means.
With the widespread support of the Swiss public towards cryptocurrencies, the shifting position of the national banks, and the governments crypto-friendly mindset, 2B4CH’s proposal is expected to pass, but 2B4CH’s founder, Yves Bennaim is optimistic about the future of cryptocurrencies regardless saying;
“If the signatures are gathered successfully, the vote will legally have to happen, and so will the conversations and debates, eventually informing and educating better everyone in Switzerland, and hopefully worldwide, as we set the example. We hope the vote will be successful, but even if it isn’t, it will already be a success if the topic is brought to the public debate.”
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