Swiss Federal Council pushes for digital finance

The Swiss Federal Council has released a report outlining its focus on digital finance, according to fintechnews.ch.

In its report, the Federal Council sets out twelve areas of action with specific measures, and instructs the Federal Department of Finance (FDF) to implement them in 2022 and subsequent years in close coordination with political circles, authorities, the private sector, and academia .

The council sees the great potential for Switzerland as a business location in the digitalization of the financial market.

It said in a statement: ‘The use of new digital technologies is opening the door for new players and leading to new products on financial markets. This potentially makes them more efficient, transparent, cost-effective and client-centric. However, digitalization also carries new risks. In Switzerland, the use of new digital technologies is generally a matter for the private sector.’

The change process and the opportunities and risks identified for Switzerland as a business location mean that the confederation has to play a more active role.

The council said that the confederation should improve the framework conditions for new business models, ensure stability, integrity, and international competitiveness, and promote the sustainability and interconnectedness of the financial centre.

In line with this, the council said that the authorities should provide the best possible regulatory framework as well as be active dialogue partners for the various stakeholders and coordinate where necessary.

The stakeholders include financial institutions, consumers, suppliers, innovative startups, globally active technology companies, academia, and operators of decentralized networks. They should also work on cross-cutting issues with regard to the competitiveness and risks of the Swiss financial centre, specifically with respect to the use of data, clouds, distributed ledger technology, cybersecurity, artificial intelligence, green fintech, teaching, and research.

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