Switzerland plans to float e-franc, a state-backed crypto

Switzerland plans to float e-franc, a state-backed crypto

Despite the continuous plunge in prices of Bitcoin, the digital currency community might get excited today as Switzerland said it will look floating e-franc.

According to Reuters News, e-franc will be Switzerland’s official digital currency.

Despite been seen as a major change of ‘mind’, the Swiss said they will begin a study into floating a state-backed digital currency.

Reuters News quoted a Swiss lawmaker Cedric Wermuth, vice president of the Social Democratic Party, who called for the study.

As a positive sign that the state might have a consensus on the matter, Reuters reported that “In its response on Thursday, the Swiss government, or Federal Council, backed the proposal to look into it, although it said there were hurdles.”

“The Federal Council is aware of the major challenges, both legal and monetary, which would be accompanied by the use of an e-franc,” it said. “It asks that the proposal be adopted to examine the risks and opportunities of an e-franc and to clarify the legal, economic and financial aspects of the e-franc.”

Should the Swiss go ahead with the launch of the e-franc, the country will be the first European country to do so. Venezuela was the first country to float a cryptocurrency called the Petro, a digital currency secured by the country’s oil and national resources.