For a long time, Switzerland has been distinguished for its top-quality chocolates, cheese varieties, and heaven-like snow-crowned mountains. Despite that, in recent time it has become famous for its involvement in the technology field – the blockchain and cryptocurrencies; by designing the Blockchain ecosystem.
Following 2016-2017 some giant companies like Swisscom, UBS were pushing for cryptocurrencies, the ecosystem saw a plunge at the end of 2017. The happenings between November 2017 to January 2018 had got the attention of the press of Switzerland and varied profit and non-profit organizations became alert in the same duration. The latest Swiss Blockchain Ecosystem map designed by the Blockchain Hub in around January 2018 gives the first insight of the different actors:
Looks like Switzerland has the best-suited environment for the cryptocurrency ecosystem to prosper. Let take a glimpse at a few reasons behind the success of blockchain in Switzerland, the new happenings, and ventures in the cards.
Why was Switzerland able to successfully establish the blockchain ecosystem?
In the whole world, Switzerland is the most distributed country. This political organization creates a well-suited environment for the blockchain system.
- They have an age-old tradition to give importance to individual rights in their society.
- They are open to modernization and open minded.
- Their stability and neutral attitude create a business-friendly atmosphere.
- They have a high regard for education and one of the best in world infrastructure.
- The citizens vote many times in a year on national matters, exhibiting a total democracy.
Further, the taxes are determined and enforce at public, cantonal and federal levels. This method is implemented in many other countries also, but the only difference is that in Switzerland the taxes applied on a city or cantonal level are much bigger. This means that the cities contest among themselves to tempt economic development and offer incitements to their people.
This results in lowered taxes, which creates a strong motivation for investment. By designing a decentralized system, that places the decision-making power in the hands of individuals, the country has created the perfect atmosphere for blockchain and economic growth.
These are some of the elements as to why this country is lighting the way in blockchain development technology and cryptocurrency and why are they becoming the world’s leading blockchain ecosystem. If Switzerland succeeds in effectively implementing the blockchain ecosystem, they can become an example for other countries.
Blockchain-centered real-life applications in Switzerland:
SBB Railway offering Bitcoin through train tickets:
In Switzerland, it is now feasible to buy bitcoin through a train ticket machine, this facility has been set up in 1000 locations across Switzerland. This system was initiated in November 2016 and is up since then. This system allows anyone with the country’s telephone number and a QR (based) wallet to buy cryptocurrency from their computerized kiosks.
Raises between CHF20 and CHF500 are available for purchase. The kiosks charge a 6 percent fee on the bitcoin sale. Although, the train station is yet to accept bitcoin as the currency for buying train tickets.
Ernst and Young affirm Bitcoin for their business:
One of the well-known accounting organizations of Switzerland – Ernst and Young announced in 2017 that they are keen to digitize their business and will be the first advisory company to accept bitcoin as the payment currency for their services.
Thus, their clients will now be able to make the payments to the company in bitcoin, their employees will have digital wallets and that they will be setting up an ATM for bitcoin, in their office premises.
Ernst and Young turned out to be a major and big player in Switzerland’s blockchain ecosystem. They are one of the founding members of the digital Switzerland, which is an upper hand in the modernization widely endorsed by various sectors. Other than this, they have also set up research partnerships with ETH Zurich and University of St. Gallen to research on redesigning the finance sector.
BitFinex considers relocation to Switzerland:
BitFinex, one of the colossal cryptocurrency exchanges in the world, is considering relocating to Switzerland. They are in talks about this movement with the State Secretariat for International Financial Matters and the federal councilor.
If this company relocates (in reality) their business operations to Switzerland, they are most likely to form a new public multinational (referred to as AG in German). This can supersede iFinex – the British Virgin Islands holding company. Nevertheless, before relocating to Switzerland, the company needs to take approval from the country’s financial market government organization.
Even though Switzerland isn’t the picture-perfect heaven, in regard to monetary firmness, affluence, and protection, it is one of the most exceedingly effective countries in the world. It is amazingly self-governing, and the citizens of this country follow their own welfare, along with working for the greater good.
Through the distributed nature of the Swiss structure, the inventive attitudes of their politicians and the economic landscape, Switzerland continues to be ahead in the blockchain modernization race.