Swiss Retail Giant Supports Payment in Local Stablecoin

Today, local crypto banking service Sygnum announced that it had partnered with Galaxus, one of Switzerland’s largest online retailers, to develop an electronic payment system. Per a tweet, the bank explained that the system would use its Digital Swiss Franc (DCHF) stablecoin to allow Galaxus to accept crypto payments. 

Optimizing the Swiss Online Retail Payment System

Sygnum launched the DCHF in March. The asset is backed by the Swiss franc and holds a 1:1 ratio with the sovereign currency. The bank planned to use the asset to improve transaction speed and bolster security, while also eliminating the need for card-based transactions.

By incorporating the DCFH stablecoin into its system, both companies plan to access the global e-commerce industry. As explained, they aim to improve connections between consumers and retailers, thus reducing intermediaries and the propensity for fraud.

Galaxus’ Chief Financial Officer Thomas Fugmann pointed out that the move was a significant step in the right direction as both firms looked towards improving online retail. “Enabling our customers in Switzerland and Liechtenstein to make payments on our online store with stable digital currencies like the DCHF further enhances their convenience,” he added.

A Track Record of Pioneering Blockchain Development 

Switzerland has witnessed a raft of crypto adoption in the past few weeks—most notably in its banking sector. Earlier this month, local news agency Finews reported that Basler Kantonalbank (BKB), a government-owned commercial bank in the country, planned to launch crypto services through one of its subsidiaries. The report explained that the subsidiary had collaborated with Bank Cler, a national banking group, to develop services that would allow customers to trade cryptocurrencies. 

Speaking with Cointelegraph, a spokesperson for the bank confirmed the news, adding that the products were due to an increased demand for crypto services in Switzerland.  “In the BKB Group, we are working to offer our clients a solution for the trading and deposit of selected cryptocurrencies. As an established regional (Basler Kantonalbank) and indeed national (Bank Cler) banking group, we wish to give our clients secure access to these new financial products.”

The spokesperson added that development is still in its early stages. So, details such as a launch date or the cryptocurrencies supported are still unavailable. Integrations like these are what makes Switzerland a dream destination for crypto enthusiasts. Thanks to initiatives like the Crypto Valley development, the European nation has managed to develop progressive tax law for blockchain and encourage investment from the industry.

It is also said to be considering a Central Bank Digital Currency (CBDC). Switzerland’s central bank was part of a consortium that committed to studying these assets’ impacts earlier this year, although few details have emerged from its efforts for now.

Read more: 

• Swiss online bank Dukascopy is building an Ethereum powered stablecoin
• Swiss National Bank Forms Partnership on Countrywide Wholesale CBDC