The Swiss Bankers Association has published a white paper on how Swiss banks can support the development of the country’s digital economy, with a Swiss franc “federated” deposit token being the solution identified by the group.
The white paper states that stablecoins have limited penetration into the Swiss financial system, even as end-to-end digitization becomes more common in business models and that Swiss stablecoins are not accessible to the public.
The authors recommend the use of a variety of stablecoins, i.e. deposit tokens “issued by regulated and fully supervised intermediaries,” issued and redeemed via smart contracts, and denominated in Swiss francs.
Tokens can be designed as ledger-based securities rather than a set of instructions to offer the greatest potential.
