PostFinance has announced a partnership with Swiss Stablecoin (SSC) to promote the development of the Swiss stablecoin: the digital franc.
PostFinance with Swiss Stablecoin to launch the Swiss digital franc
PostFinance announced its new partnership with Swiss Stablecoin Ltd (SSC) to promote the development of the “digital franc,” the new Swiss stablecoin.
At the moment, this partnership will seek to create a joint Proof of Concept (PoC), meaning a digital appearance to be given to the new stablecoin backed 1:1 by the Swiss franc.
This PoC will also be conducted in collaboration with the Cardossier association, of which PostFinance is a founding member, which is the first use case of the Swiss stablecoin.
Cardossier is a platform through which all relevant information on the entire lifecycle of a vehicle can be stored and transferred in a traceable and secure manner.
Payments for services within inter-company processes during the lifecycle of a vehicle provide a perfect testing environment for the digital franc. Very small amounts are charged during the vehicle exchange process, which is why it makes sense to integrate a micropayment solution.
Stablecoin: the goal is to issue and redeem the digital franc through the network of a Swiss bank
The goal of the Proof-of-Concept is to issue and redeem the digital franc through the network of a Swiss bank.
If the first use case on Cardossier works, PostFinance explains that it will then form the basis for duplicating the process in the future at other financial service providers, enabling the digital franc to be made available to the economy and the general public in a phased manner.
In this regard, PostFinance is convinced that digitized business models will become increasingly important in the future and that Switzerland needs a digital franc.
Benjamin Staeheli, Chief Business Unit Officer for Payment Solutions at PostFinance said:
“The particular benefit for customers is the programmability of the digital franc. By adding logic to payments, processes can be made more efficient and automated. This represents a high level of potential for innovation and could become a catalyst for the digital economy.”
Swiss Stablecoin also shares PostFinance’s ambition to create a currency with a digital franc that enables new functions and also enjoys trust and wide acceptance among the population.
Pascale Bruderer, founder and chair of the SSC Board of Directors commented:
“We are delighted that we have found the ideal partner for the project launch in PostFinance, a strong, innovative financial institution. Together, we want to do the pioneering work and ensure right from the outset that a digital franc will also bring real economic benefits.”
Regulation in the UK
These past few days, there has been talk of stablecoin in the United Kingdom as well, though about regulation.
And indeed, the Financial Services and Markets Bill (FSMB) has been passed by the House of Lords and has today officially moved into the final stages before it comes into force.
The FSMB recognizes crypto as a regulated activity and stablecoins as a means of payment.
In this way, the UK is moving forward to align with the European Union, which has introduced legislation for MiCA, with the goal of providing comprehensive regulation of the crypto market.