Swiss government publishes report on digital finance
The Federal Council sees great potential for Switzerland in the digitalisation of the financial market. On 2 February 2022, the Swiss government adopted the report on digital finance, which identifies opportunities and risks, and also sets out specific areas of action.
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, digitalisation also carries new risks.
In Switzerland, the use of new digital technologies is generally a matter for the private sector. However, 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. It 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 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 authorities should:
- provide the best possible regulatory framework;
- be active dialogue partners for the various stakeholders (financial institutions, consumers, suppliers, innovative startups, globally active technology companies, academia and operators of decentralised networks) and coordinate where necessary;
- 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.
More information: Digital finance: Federal Council sets out areas of action for coming years (admin.ch)