{"id":60264,"date":"2018-06-12T23:48:11","date_gmt":"2018-06-13T06:48:11","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=60264"},"modified":"2019-11-25T04:24:38","modified_gmt":"2019-11-25T04:24:38","slug":"switzerland-runs-referendum-for-bitcoin-like-financial-system","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/switzerland-runs-referendum-for-bitcoin-like-financial-system\/","title":{"rendered":"Switzerland Runs Referendum for Bitcoin-Like Financial System"},"content":{"rendered":"<p>Almost 500,000 Swiss citizens voted in favor of a financial system based on the fundamentals of <a href=\"http:\/\/cryptoslate.com\/coins\/bitcoin\">Bitcoin<\/a>.<\/p>\n<p>While the referendum was not enough to bring change, the radical campaign won about\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-06-10\/swiss-set-to-reject-sovereign-money-proposal-projection-shows\">25%<\/a> of all votes in favor of overturning Switzerland\u2019s economic system.<\/p>\n<figure id=\"attachment_48858\" aria-describedby=\"caption-attachment-48858\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-48858\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/switzerland-social-300x158.jpg\" alt=\"Switzerland Continues to Develop as Blockchain Hub\" width=\"300\" height=\"158\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/switzerland-social-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/switzerland-social-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/switzerland-social-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/04\/switzerland-social.jpg 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-48858\" class=\"wp-caption-text\">Related:\u00a0<a title=\"Switzerland Continues to Develop as Blockchain Hub\" href=\"https:\/\/cryptoslate.com\/switzerland-continues-to-develop-as-blockchain-hub\/\">Switzerland Continues to Develop as Blockchain Hub<\/a><\/figcaption><\/figure>\n<p>Intended to make the financial system more robust, the <i>Sovereign Money Initiative <\/i>\u2014 or <a href=\"https:\/\/www.vollgeld-initiative.ch\/english\/\"><i>Vollgeldsystem<\/i><\/a> \u2014 would've barred banks from \u2018creating\u2019 money electronically when lending beyond their cash reserves.<\/p>\n<p>Known as \u2018fractional reserve\u2019 banking, this process characterizes how banks may alter a nation\u2019s circulating supply, as per a central bank. While common worldwide, fractional reserve banking has been heavily criticized over the years \u2014 the late Milton Friedman even <a href=\"https:\/\/fee.org\/articles\/the-great-depression-according-to-milton-friedman\/\">suggested<\/a> the system was partially responsible for the Great Depression.<\/p>\n<p>Switzerland\u2019s banking industry begs to differ. Opposing the Sovereign Money Initiative, Swiss National Bank\u2019s President Professor Thomas Jordan <a href=\"http:\/\/www.swissbanking.org\/de\/themen\/aktuell\/vollgeld-initiative\">stated<\/a>:<\/p>\n<blockquote><p>&#8220;The Vollgeldsystem cannot prevent financial bubbles, because these are based primarily on misjudgments of investors.&#8221;<\/p><\/blockquote>\n<h2>Bitcoin: The Answer?<\/h2>\n<p>Classically, fractional reserve and similar schemes prompted the inception of Bitcoin \u2014 whose creator embedded the network\u2019s genesis block with a pointed <a href=\"https:\/\/bitcoin.org\/bitcoin.pdf\">message<\/a> \u2014 \u201cThe Times 03\/Jan\/2009 Chancellor on brink of a\u00a0second bailout for banks\u201d.<\/p>\n<figure id=\"attachment_31877\" aria-describedby=\"caption-attachment-31877\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-31877\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/02\/switzerland-facebook-300x158.jpg\" alt=\"Swiss Financial Authorities to Treat ICOs As Securities\" width=\"300\" height=\"158\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/02\/switzerland-facebook-300x158.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/02\/switzerland-facebook-768x403.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/02\/switzerland-facebook-1024x538.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2018\/02\/switzerland-facebook.jpg 1200w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-31877\" class=\"wp-caption-text\">Related Story:\u00a0<a title=\"Swiss Financial Authorities to Treat ICOs As Securities\" href=\"https:\/\/cryptoslate.com\/swiss-financial-authorities-treat-icos-securities\/\">Swiss Financial Authorities to Treat ICOs As Securities<\/a><\/figcaption><\/figure>\n<p>Emerging as a direct challenge to the debt-based systems of traditional finance, cryptocurrencies like Bitcoin offers an engineered solution \u2014 a fixed circulating supply secured by cryptography.<\/p>\n<p>Although, such answers may not have won over the banking industry. JP Morgan\u2019s CEO Jamie Dimon, has been a vocal critic of Bitcoin \u2014 <a href=\"https:\/\/cryptoslate.com\/crypto-vs-financial-bigwigs\/\">describing<\/a> it as a \u201cfraud\u201d and \u201cworse than the <a href=\"https:\/\/www.investopedia.com\/terms\/d\/dutch_tulip_bulb_market_bubble.asp\">Tulip Market Bubble<\/a>\u201d.<\/p>\n<p>While the Swiss Bankers Association has no defined position on cryptocurrencies, it responded to the initiative \u2014 claiming its current systems are superior. The association <a href=\"http:\/\/www.swissbanking.org\/de\/themen\/aktuell\/vollgeld-initiative\">noted<\/a>:<\/p>\n<blockquote><p>The Swiss Bankers Association resolutely rejects the full-money initiative. The existing monetary and financial system offers undeniable benefits and has been shown to work very well in serving the people and the economy.<\/p><\/blockquote>\n<p>Cryptocurrencies may face scrutiny where banks are exempted. <a href=\"http:\/\/cryptoslate.com\/coins\/tether\">Tether<\/a>, for instance, was <a href=\"https:\/\/cryptoslate.com\/crypto-markets-drop-regulators-subpoena-bitfinex-tether\/\">subpoenaed<\/a> by US regulators in 2017 after questions were raised over its financial reserves. While its USDT stablecoin must legally be backed by USD currency held in reserve, it appears that such regulations aren't applicable to banks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Almost 500,000 Swiss citizens voted in favor of a financial system based on the fundamentals of Bitcoin. While the referendum was not enough to bring change, the radical campaign won about\u00a025% of all votes in favor of overturning Switzerland\u2019s economic system. Intended to make the financial system more robust, the Sovereign Money Initiative \u2014 or [&hellip;]<\/p>\n","protected":false},"author":175,"featured_media":60330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Switzerland Runs Referendum for Bitcoin-Like Financial System<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/switzerland-runs-referendum-for-bitcoin-like-financial-system\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Switzerland Runs Referendum for Bitcoin-Like Financial System\" \/>\n<meta property=\"og:description\" content=\"Almost 500,000 Swiss citizens voted in favor of a financial system based on the fundamentals of Bitcoin. While the referendum was not enough to bring change, the radical campaign won about\u00a025% of all votes in favor of overturning Switzerland\u2019s economic system. 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