Switzerland GDP*

Source: *2018 WorldBank

Recently the Swiss Federal Institute for Technology has issued a report looking at the launch of an ‘eFranc’, which would be a form of a stable coin i.e. a digital currency backed by CHF Francs. The proposal is that the Swiss National bank, would issue it to other banks, in return for bank notes or other deemed eligible collateral. This would create a method for making digital payments as well as reducing the need to store and handle physical cash. The proposal is that the Swiss banking sector needs to adopt new technology and payment solutions in order to remain relevant, in a global economy that is increasingly becoming digitised. 

The Swiss on 10th September passed what some are referring to as “The Blockchain Act”.

Exchange Traded products which are set to help make it easier to create decentralised finance as well as offering Digital assets backed by equites bonds commodities etc.

It is likely that we are going to see more and more countries following Switzerland and changing their legislation and thus making it easier to establish and run Blockchain based businesses and thus create and trade all manner of Digital Assets. This will be needed for different jurisdictions attract the right types of organisations that are creating jobs and so bringing much needed revenue. It is increasingly being realised that there are huge opportunities to improve efficiency across a wide range of industries and society by using Blockchain technology  as well as offering greater transparency which leads to greater trust in corporations and governments, which in a world of ‘fakenews’ is much needed in our economies!

Amazon has had a fantastic 2020 with its share price at the beginning of January rising from $1,898 to over $3,531 in September enabling it to join the exclusive club of companies that are valued at over $1.5trillion, yet incredibly despite its success it is still not one of the 15 in the S&P 500 that is net cash positive. Given its internet sales it has also awoken, the retail’s giant, Walmart who saw its on-line turnover rise by 97% last quarter . However, last year Amazon generated revenue of $280 billion and in its latest quarterly results reported $89+billion of revenue, of which $10 billion was from Amazon Web Services (AWS), another $10billion from advertisers both of  which is generated from corporate clients. Much of the remaining $69billion turnover was from individuals shopping on-line so just think of all those bank charges and credit card fees that could be saved if Amazon used its own digital currency. As a rough guide if one assumed that it costs Amazon 1.25% to process payments i.e. card fees and we assume that only 33% of the $69 billion last quarter used an Amazon coin that could result in boosting Amazon’s profit by $280million. Over a year that would be an additional $1.1billion of profit which equals over 5% increase in profits and that ignores any savings in FX fees as it transfers money globally buying goods and services or paying its 647,000 staff.

However, in order for Amazon to issue its own digital currency surely it needs some technology. Well fortunately Amazon have been securing patents for a number of years around Blockchain technology. Such as back in 2018 its patent to be able to track crypto currency transactions or its proof of works patent it filled in May 2019 , which could be very helpful to assist any digital currency ambitions it harbours.

More recently Amazon have announced that drivers in the USA will be able to use Alexa to pay for fuel for their cars as they drive into gas/petrol stations. This 2 min video shows the convenience, although some may say the how Amazon is tracking and monitoring its customers, as this may feel a little like - ‘Big Brother”.