Switzerland Mulling a Plan to Recognize Bitcoin as a Legitimate Foreign Currency

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Switzerland Mulling a Plan to Recognize Bitcoin as a Legitimate Foreign Currency
Switzerland Mulling a Plan to Recognize Bitcoin as a Legitimate Foreign Currency

Switzerland Mulling a Plan to Recognize Bitcoin as a Legitimate Foreign Currency

After an unfortunate development in China wherein the government banned Bitcoin in any financial transaction, the virtual currency is gaining traction in another part of the world. Now politicians in Switzerland are set to vote on proposals submitted by 45 members of the Swiss Parliament for the legitimization of Bitcoin as foreign currency.

Once the proposal is accepted, Bitcoin will be legally recognized as a legitimate foreign currency, like the euro or dollar. According to the local sources the proposal regarding Bitcoin was put forward by the Parliamentary Group for Digital Sustainability (Parldigi) who supports the cause of Bitcoin.

Request for Evaluation

The Parliamentary Group for Digital Sustainability is requesting the Swiss Government to evaluate the opportunities and challenges that may appear if Bitcoin is being used by the country’s financial sector. The group also wants clarification about the digital currency’s legal standing with respect to anti-money laundering, VAT, and securities laws, etc.

The legislators want Bitcoin to get approval for its legitimate use and that can be ensured only after Parliament processes it in due course. In fact, they are putting questions to the Swiss executive arm of government, the Federal Council for judgment for greater clarification and broader understanding.

The Parliamentary Group for Digital Sustainability is also of opinion that Bitcoin it is organization several programs that are discussing the credibility of Bitcoin internally so that they are able to put their point across. Greater clarity about the credibility of Bitcoin and its impact on the larger economic activities will determine the success of the move the group has taken.

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The Proposal Has Support from Various Parties

The proposal for evaluation of Bitcoin as a legitimate foreign currency is getting wider support from various parties. In its press statement, the group says that its members who come from major parties such as SP, FDP, GLP and the Greens, have concluded that Bitcoin and comparable digital currencies not only pose risks, but also opportunities for Switzerland’s financial sector.

The Parliamentary Group for Digital Sustainability also admits that as Bitcoin is already in use as a means of payment in Switzerland, it makes sense to ensure legal certainty regarding money laundering laws and VAT. The group is trying to help Bitcoin gain credibility once it is approved by the parliament as a foreign currency. It will then be used as a medium of exchange.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com