Why Switzerland is Fast Becoming a Global Hub for Blockchain Industry
Nicholas Otieno Nov 17, 2019 04:00
Switzerland is fast adopting innovation and blockchain and is positioned to create a huge impact on other economies.
Blockchain technology is likely to disrupt several industries within the next five to ten years. It’s relatively a new phenomenon that evolved out of new technological developments.
Now already there exists strong global competition when it comes to blockchain technology. Nations leading in the current blockchain innovation movement come from different parts of the world. Examples of non-European countries include the United States, China, Japan, Singapore, and Dubai.
But the latest report shows that Switzerland is poised to become a crucial global hub for the blockchain industry. The Investment group Crypto Valley Venture Capital (CVVC) report indicates that the top 50 blockchain-related firms in Switzerland are valued over US$40 billion in 2019.
Now let’s understand what makes Switzerland become the next hub for the global blockchain industry.
Country’s Regulations and Policies
CVVC Founder and CEO – Mathias Ruch – revealed that Switzerland’s policies and regulations assist in creating an environment that attracts blockchain-related startups from across the world.
Mathias said that what makes the nation unique in the venture capital environment is that Swiss people not only invest in startups but also maintain their very own ecosystem. They have a co-working space, an advisory unit, and lots of meetups. So, they have an in-depth insight into the national and also global blockchain ecosystem.
According to figures from the report released in October 2019, there are more than 800 firms using cryptocurrency and blockchain in Switzerland, employing over 4,000 people.
To become a global hub is a commitment backed by friendly regulations, strong judiciary, and strong access to capital. All these make Switzerland attractive to crypto and blockchain startups from other regions around the world.
New, Promising Technologies Making Paradigm Shifts
Mathias recognized that blockchain technology and perhaps also cryptocurrencies are here to stay. He said that these technologies are not going to go away. So, people have to deal with that.
He thinks on a global level as he believes that people across the world have to come to a global understanding of how they want to regulate that technology. He identified that this technology has no borders, which is easily accessible or applicable to several and many people around the world.
From a geopolitical perspective, Mathias thinks and also with the new legal framework that Switzerland expects being implemented in early 2021, that the country will be at the forefront of a blockchain jurisdiction, globally.
In August 2019, the Swiss Financial Market Supervisory Authority (FINMA)announced new regulations concerning anti-money laundering rules in the blockchain industry. Also, FINMA issued banking licenses to two new blockchain service providers Sygnum AG and SEBA Crypto AG that work with digital assets.
As organizations such as Facebook facing scrutiny from the US government due to their announcement of the Libra cryptocurrency, regulators across the world now are looking for ways to deal with the emerging technology and how it could impact societies and markets.
Takeaway
What Mathias Ruch talks about is true. Switzerland rapidly becomes a global hub for the blockchain industry.
Switzerland is ranked first in being the most crypto-friendly nation in Europe in 2018. The country is an attractive nation for blockchain because of the following reasons:
· It provides very favorable locations for blockchain firms and startups
· It has a very blockchain-friendly environment
· It has lots of knowledge of innovation and technology
The way the nation is open for experimenting with blockchain and the way it is regulating ICOs are a great worldwide example.
Image via Shutterstock
Image source: Shutterstock