Switzerland—the new Blockchain Capital?
The economic minister of Switzerland, Johann Niklaus Schneider-Ammann, has laid out plans which would help cryptocurrency startups in Switzerland to get off the ground and would eventually make the country the “Blockchain Capital of the World.”
Switzerland has a history of sketchy banking which it is now planning to leave behind. For quite a long while, people wanting to store large amounts of wealth have chosen to store it in Swiss banks since the banking system in Switzerland has been open to such individuals or companies. Now, however, the country is investigating emerging financial markets and many startups in major cities in Switzerland are now planning to be crypto-financial centers later.
One of the Big Four auditors, PwC, said that four of the top ten ICOs in 2017 had been based in Switzerland. Some lawmakers are aiming to use the strong banking system, high education rate, and the low taxes that the country has to make it the “Silicon Valley” of cryptocurrencies.
At the heart of the Swiss crypto-expansion is the town of Zug, a community of 120,000 individuals. The low corporate tax rate of the town—14.6 percent—has been quite a lure for a few startups. This resulted in the town’s growth and a reduced unemployment rate. Zug is also the first town to install Bitcoin ATMs town and the place Ethereum was incorporated.
These crypto-projects have helped the country evade some of the losses their banking sector has made in the last few years. They have lost 20% of the banking institutions in the country in last decade. We have talked about Switzerland’s situation in the blockchain industry and its plans for the future in a previous post of ours.