The cryptocurrency craze has attracted hundreds of millions of francs in crowdfunding cash to Switzerland, often based on the flimsiest of concepts. The Crypto Valley Association (CVA) is banking on research to lay a more solid foundation for the industry in Switzerland.
The Head of the Swiss Federal Department of Economic Affairs, Education and Research took part in the Crypto Valley Conference in Zug on June 21, where he affirmed his support to blockchain technology and his belief that it will “penetrate the entire economy” of Switzerland.
The Swiss crowdfunding market has reached a record high volume of CHF 374.5 million in 2017, almost three times more than in the previous year. This has been revealed by the latest Crowdfunding Monitoring report issued by the Lucerne University of Applied Sciences and Arts. The financing of SMEs and investments in real estate are key drivers of the strong growth. The authors of the report are expecting a further marked increase to about CHF 1 billion this year. Compared to the more advanced markets in the United Kingdom and the United States, Switzerland is two to three years behind, but catching up rapidly.
Le financement participatif connaît un boom en Suisse. En matière de crédits, la hausse s’avère constante. Mais pour que l’investisseur retrouve ses billes, plusieurs éléments sont à examiner, selon Marie Debombourg, directrice des opérations (COO) auprès de la plateforme genevoise de financement des entreprises WeCan.Fund. Il convient ainsi de vérifier les données produites par la firme à l’origine d’une telle démarche. Quant à la blockchain, elle permet de réaliser des transactions sécurisées. «Il y aura toujours une personne pour valider toutes les étapes du dispositif», poursuit la jeune-femme. L’absence d’intermédiaire fait toutefois gagner du temps et de l’argent aux entreprises.
In other countries, politicians express concern about the cryptocurrency craze, citing worries about security, regulation, volatility and a speculative bubble. Not in Switzerland. The affluent Alpine country wanted “to be the crypto-nation”, Johann Schneider-Ammann, economics minister, told journalists as he arrived for a private crypto finance conference in St Moritz last week. Of the 10 biggest proposed initial coin offerings — by which start-ups raise funds by selling tokens — four have used Switzerland as a base, according to PwC.
The Swiss are smart. They have always been with money. In last 20 years, Switzerland has progressively lost its appeal as the former secret banking centre of the world. This has dramatically changed the landscape among Swiss professionals – mainly lawyers and fiduciaries – which have progressively lost clients and businesses and had to look for new areas of opportunities. And now they have been the fastest and smartest in jumping at this new business opportunity. And this time the potential is really immense for the Confederation.
