Referendum proposal Introduced in Switzerland to Include Bitcoin in Federal Constitution
According to crypto enthusiasts, Switzerland has long been known as one of the world’s most cryptocurrency-friendly countries, providing an ideal setting for leading crypto-focused businesses and institutions to operate. With its beneficial tax regime, Zug, Switzerland’s largest city and capital of the Zug canton, has transformed into a major hub for cryptocurrency enterprises across the globe, getting it the nickname “crypto valley.”
2B4CH, a non-profit organization focused on blockchain and cryptocurrency, has suggested the acceptance of Bitcoin in the Swiss federal constitution after initiating a referendum proposal following the country’s contribution in cryptocurrency adoption. Despite the fact that the cryptocurrency has praised the move, it is still only a suggestion because the specifics have not been worked out.
2B4CH claims that Switzerland more than 100,000 Bitcoin and cryptocurrency advocates who could make a significant difference by voting “yes” to raise the proposal’s likelihood of permission. Since Switzerland was the foremost country to enforce legislation to regulate the industry’s activities, the suggestion is anticipated to be endorsed.
The Distributed Electronic Registers Act, passed in September 2020, allows cryptocurrency firms to tokenize bonds, shares, and other financial products. On the other hand, over half a million Swiss citizens turned out to vote in June 2018 in support of a financial model that was free of bank regulation.
Because of the currency sovereignty referendum, banks were unable to electronically create money, which was particularly problematic when lending funds that exceeded their cash reserves. In contrast, the Swiss Banking Association flatly refused to accept the referendum’s results. “There is a strong consensus among Swiss bankers that the full-money action plan is a bad idea. The current monetary and financial system has undeniable benefits and has found to be especially useful for people and the economy.”
A clear majority voted in favor of cryptocurrency, and the banks no longer have control over the creation of new currency. Despite the fact that many banks were anti-crypto at the time, many have since changed their minds since trading was introduced by many. The country’s initial cryptocurrency investment fund was authorized in September 2020.
To allow Swiss Mutual Funds to lawfully offer its customers with straight forward exposure to cryptocurrency-focused assets, as per the article, the Financial Market Supervisory Authority (FINMA) has authorized the Crypto Market Index Fund (CMIF). The accomplishment of this poll, based on past choices and their effect on the financial ecosystem, is likely to encourage other nations to follow suit and expedite the acceptance of cryptocurrencies across the world.