Switzerland is one of the more crypto-friendly nations on the planet. However, the country voted down the Sovereign Money Initiative that sought to limit banks from creating money electronically.
Ever since Bitcoin came into being, banks and cryptocurrency have been at odds with each other. This is understandable as cryptocurrency is decentralized, and, in Bitcoin’s case, limited in number. Conversely, banks are highly centralized, and the supply of fiat currency can be augmented with just the flip of a printing press’ power button.
Switzerland Rejects Pro-Crypto Mandate
A group called MoMo recently spearheaded the Sovereign Money Initiative. This proposal would have altered the country’s financial industry to kind of mirror that of cryptocurrency. The main feature of the initiative was that banks could not create money electronically if they happen to lend more than what they have deposited (which occurs on a regular basis).
However, the Swiss people voted against the Sovereign Money Initiative. A board member of MoMo, Emma Dawnay, said the following about the failed proposal:
Cryptocurrency and the blockchain does look like where we’re heading. It could have been used under the system we were proposing.
Blockchain technology could be how the Swiss government could try to bring debt free new money into the economy. Despite the vote losing the Swiss central bank is looking at similar things.
A Silver Lining
However, all is not doom and gloom with the initiative’s failure. A full 25% of those polled (numbering 500,000 individuals) supported the measure. Naturally, the Swiss National Bank was against it, with its president, Thomas Jordan, calling it a “dangerous experiment.”
MoMo is not giving up in trying to change the country’s financial system. Campaign spokesman Raffael Wuethrich said:
The discussion is only just getting started. Our goal is that money should be in the service of the people and not the other way around and we will continue to work on it.
Emma Dawnay adds:
The way money currently comes into circulation still isn’t well understood. Before we can expect change we need to educate people about how money is created and the established institutions which benefit from it.
It’ll be interesting to see how much traction the Sovereign Money Initiative gains in the next political cycle. As for the Swiss National Bank, it is actually looking at using the blockchain to keep track of its financial transactions.
The initiative’s failure shows that further work needs to be done, and it will take time and effort to inform people about how the current economic system actually works, as well as the benefits of cryptocurrency.
Do you think the Sovereign Money Initiative will eventually pass in Switzerland? Let us know in the comments below.
Images courtesy of Shutterstock.
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