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ICOs? Call Switzerland

Scrutinizing Value profile picture
Scrutinizing Value


  • Cryptocurrencies have defenders and detractors even at the highest level of financial institutions.
  • While China and South Korea have banned ICOs, Switzerland seems to prefer to be ahead of the situation by dominating as much as possible the exaggerations of new currency launches.
  • There is every reason to believe that cryptocurrencies are a form of financial evolution that can not be stopped, but must be seriously regulated.

The well-known Switzerland of the all-powerful banks, numbered bank accounts and sacred Swiss Franc, intends to join the club of cryptocoin supporters. More than this, the country intends to become a main player considering it wishes to be the crypto-nation, something that only the Swiss pragmatism could accept.

After the authentic madness of the super appreciation by way over a thousand percent of many cryptocurrencies we fear the possibility of a huge developing bubble. We see that the phenomenon has not slowed down and that the harsh criticism has had no effect. Is this a necessary path to a future in which virtual currencies will add value to the financial world?

Speaking about Bitcoin at the annual meeting for Daily Journal in Los Angeles, Charlie Munger stated a few days ago that he "never considered for one second having anything to do with it." In a two-hour Q&A he also stated that "Bitcoin is noxious poison."

It is curious to note that among the major critics of these new currencies are the most prominent investors and academics such as Warren Buffett, Ben Bernanke, Joseph Stiglitz and Paul Krugman. In a quite different position, Stefan Ingves, Governor of the central bank of Sweden, said in a Bloomberg TV interview (video link) that cryptocurrencies "are not really currencies at all." He does not fail to point that "one should really be careful and mindful of the fact that this is more like participating in a lottery or going to the casino. This is not banking as we know it." Nevertheless, financial life runs its course and Sweden itself may be the first bank to have its own cryptocurrency (e-Krona) within the next few years. We will have to think that virtual currencies have already gained their own place and that the problem will be all about regulation, oversight and tight supervision.

This article was written by

Scrutinizing Value profile picture
Graduated in Finance specialized in company valuation and business recovery. In the management of portfolios the author has always taken into consideration different degrees of risk corresponding to distinct types of assessment. The author has been an investor and trader for a couple of decades and Portfolio Manager on several situations.

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