Banks in Switzerland are planning «book money tokens (BGT)»
The financial sector in Switzerland is planning a game-changer: The Swiss Bankers Association (SBA) has written a white paper covering the launch of a brand new stablecoin BGT pegged to the Swiss Franc (CHF).
Switzerland: Banks plan «book money tokens»
Together with experts and members of their banks, the SBA, which acts as the umbrella organization of Swiss banks, would like to create the so-called book money token (BGT). The aim here is in particular to strengthen Switzerland’s competitiveness and innovative ability. This was announced in a press release in mid-March .
The BGT is an innovative form of book money that banks use to process financial transactions. Its big advantage: the stablecoin is said to be linked to the Swiss franc, which means that its value stability is covered by the assets of the issuing banks. As so-called “programmable money”, the BGT could offer numerous possible applications.
What are the advantages of the BGT?
The authors of the white paper present three different variants of the book money token, with the joint token being the most promising option. The other two options are “Standardized Token” and “Coloured Token”. Compared to classic stablecoins, the BGT offers a major advantage: it fulfills an essential requirement for broad acceptance, namely the official, regulatory-secured character of conventional money. As a result, the BGT is able to meet customer needs for confidentiality and privacy better than its predecessors. So the BGT in Switzerland would have the advantages of stablecoins – but without the biggest disadvantages.
With the introduction of the BGT, Switzerland could take an important step towards financial competitiveness in the digital economy. The innovative stablecoin could strengthen the country’s ability to innovate and help maintain Switzerland’s economic and technological sovereignty. Individuals and businesses would benefit from the availability, ease of use, reliability and security of payments that the BGT offers. Switzerland would thereby possibly strengthen its importance in the financial sector.
The fact that a digital currency for processing banking transactions is in high demand can also be seen from XRP . The sixth largest cryptocurrency is known as “bank coin”. The target group of cryptocurrencies are banks that transfer funds to each other and have had to resort to complicated, expensive or slow systems to do so.
