Switzerland: Hands-Off Approach Toward Bitcoin

The Swiss Bundesrat has decided to uphold Switzerland’s hands-off approach to Bitcoin. It has explicitly been stated that Switzerland does not regulate Bitcoin now, nor that the country is llikely to do so in the near future. The decision comes after months of deliberation and hearings on what Crypto currencies are actually all about and what they are likely to achieve and be used for in a world financial system of the future.

Expert testimony has been taken into account, and state-of-the art writings, white papers and other publications about Bitcoin and Crypto currencies have been sifted through in an effort to arrive at a both politically and economically reasonable solution.

With its hands-off approach, Switzerland has decided to step back and watch the digital currency phenomenon grow without regulatory interference.

It appears that the Swiss have begun to understand the state of the current and dollar-based world currency system. The country’s Bitcoin decision comes at a time when Switzerland has decided to open itself up to direct Chinese renmimbi trading and amidst preparations for a referendum on whether or not the Swiss National Bank should be mandated to hold at least 20% of the country’s foreign currency reserves in gold. The latter would significantly decrease the country’s exposure to the dollar which, as with most central bank, is currently the number one reserve “asset” (or, rather, liability).

Switzerland’s decision on Bitcoin appears to be part of an overall move toward at least a partial system of Sound Money, one which is likely to increase the importance of gold for long-term holdings and both paper and virtual currencies for transactions and trade.

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