Bern away: Swiss canton refuses to spend $108mln to house refugees


Switzerland refused to provide financial assistance to the “Crypto Valley”

  • Swiss “Crypto Valley” is under the threat of a wave of bankruptcies.

  • The authorities are reluctant to directly address the problems facing the industry.

  • The last decision is up to local banks.

International consortium of news organizations, developing transparency standards.

Famous Swiss Crypto Valley May Face Economic Crisis Without Rescue Parachute Due To Decision Of Local Authorities.

The authorities of the Swiss city of Zug refused to create a separate fund in the amount of $ 102.7 million to help the “cryptocurrency valley”.

According to the Swiss newspaper SonntagsZeitung, Zug’s CFO Heinz Taennler failed to convince the local authorities to provide separate financial aid for fintech companies.. 

Previously BeInCrypto editors wrote, that Taennler tried to convince local authorities to create a fund consisting of private investment, local government contributions, and federal guarantees.

The fund was supposed to be a rescue ballast for the “crypto valley” during the economic crisis caused by the coronavirus pandemic.

However, Swiss fintech companies still have a chance to get support from the government..

Ask banks for help

SonntagsZeitung reports that in April the federal government decided to approve fintech companies to request financial assistance in the form of emergency loans from cantonal banks.

Cantonal banks – Swiss credit institutions belonging to varying degrees to the cantons (counties) of Switzerland.

Recall that out of the 50 largest fintech companies in the “crypto valleys”, only 25 announced their confidence to hold out for a year in the current conditions.

Earlier, the Swiss Federal Council has already made it clear that the legalization of the cryptocurrency market, just like its development, will only complicate the economic difficulties of Switzerland..

Crisis storm

In April, the head of the International Monetary Fund (IMF) Kristalina Georgieva called the current financial crisis the worst in the history of the organization..

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The head of the IMF acknowledged that the recovery of economic prosperity in many countries will take longer than previously predicted.

Switzerland is equally interested in curbing the spread of coronavirus infection.

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For example, the Swiss Federal Institute of Technology (ETH Zurich) previously announced the development of a decentralized system for monitoring contacts infected with the Covid-19 coronavirus..

However, the American IT giants Apple and Google are ahead of Europe with the development of a system to control the contact of infected with coronavirus.

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However, according to Russian analysts, the emergence of a sensational technology from two American IT corporations in Russia is extremely unlikely..

What do you think? Can Crypto Valley Survive the Financial Crisis? Share with us with our thoughts in the comments and join the discussion in our Telegram channel.


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