Swiss Bankers Association is Proposing Use of Deposit Tokens to Encourage Digital Economy Growth

The Swiss Bankers Association has recently released a white paper outlining how Swiss banks can aid the progression of the country’s digital economy.

The paper suggests the use of a stablecoin denominated in Swiss francs as the solution. This deposit token would be issued and redeemed by smart contracts and could be structured as a ledger-based security for the highest potential.

Three design options for the token are discussed in the paper: standardized tokens issued by commercial banks, colored tokens issued by commercial banks to any standard, and joint tokens issued by a licensed and supervised special purpose vehicle consisting of participating banks.

The authors advocate for the joint token option.