The Swiss stock exchange, SIX has demanded that the country’s central bank release a stablecoin cryptocurrency as a payment option for the new digital securities trading platform that the national stock exchange plans to launch
According to a report by Swiss Info, SIX Group revealed at the Crypto Valley Association conference this week that traders would be able to swap cash for a new stablecoin digital token on the new platform, SDX.
The soon-to-be-launched SDX platform trades digital-only versions of bonds, stocks, and other securities. Hence if the stablecoin is approved, it would serve as a unit of payment for these transactions since conventional currencies could back it. It can as well be easily purchased and redeemed for cash from the exchange.
In an email statement, SIX wrote that the stablecoin would allow “SDX to accept CHF payments from member banks in central bank money, and issue equivalent tokenized CHF in SDX.”
“We most definitely favor a central bank issued stablecoin,” SIX concluded.
Meanwhile, although the Swiss National Bank has not responded to SIX’s request, it would likely take considerable effort since the central banking authority has always held a cautious policy on digital currencies, as per the report.
However, the fact that the Swiss Stock Exchange proposed stablecoin would apply to the “wholesale” market banks making payments between each other means it could still get a green-light.
If that happens, then it would be a big win for SIX, because an SNB-issued stablecoin would mitigate the risk of the pot of currencies underpinning the token going bust. Hence, the digital currency holders would be able to cash out the coin, with the cash available easily.
Also, the development would erase counterparty risks, releasing banks with the payment system from the obligation of putting aside capital to cover potential defaults.
In another report regarding crypto in Switzerland, we noted that Falcon Private Bank introduced direct crypto transfers via a new wallet.
