Crypto Valley asked the Swiss government for help

Switzerland is ready to recognize the cryptocurrency and blockchain industry as a strategically important area that needs financial support from the state due to the general situation in the world. The crisis has been caused by the fact that dozens of countries have had to resort to measures to limit economic activity in order to curb the spread of coronavirus.

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More than $102 million to support the Swiss crypto industry

The fact that officials have this attitude is evidenced by a letter from Crypto Valley, a Swiss lobbying organization that defends the interests of companies that work with blockchain developments and cryptocurrencies in this country. Discussions on support for the crypto industry have resulted in a sum of $102.7 million (100 million Swiss francs). This is how much money is expected to be allocated.

The necessary financial resources will be added to the special fund from which Crypto Valley will distribute the money. The resources will consist of both direct budgetary support and State guarantees. In addition, a number of private investors have expressed the desire to help the Swiss crypto industry.

The demand for blockchain technology is increasing

That the situation with the coronavirus will have an impact on the cryptocurrency business was previously reported by the World Bank, which said that the volume of remittances from migrants to their families will fall this year by almost 20%. Meanwhile, the cryptocurrency sphere consists not only of financial transactions and trading but also represents the development of the use of a blockchain at the junction of financial and other business processes in an organization.

In addition, the blockchain has become a convenient tool for “second breath” of such technologies as artificial intelligence, as well as augmented reality. At the same time, the Blockchain technology is increasingly in demand for the digitalization of data processing.

For example, the New York-based organization Northwell Health, which unites more than 800 U.S. hospitals, has begun using distributed registry technology to work with the supply of medical equipment, including from partners in Switzerland. For this purpose, an agreement was reached with IBM on the use of cloud system Rapid Supplier, which is based on blockchain.

Blockchain technology is needed in global logistics

The Organizing Committee of the World Economic Forum (WEF), an event held annually in Davos, Switzerland, has issued a report announcing that the global supply chain gap, which is now increasingly evident, can be “cured” through distributed registry technology.

Analysts pointed out that the global economic crisis triggered by the Coronavirus pandemic is causing entire business processes to “disappear” in the value chains of goods and services, resulting in serious difficulties in implementing some international contracts. The additional clarity that a blockchain brings to any industry where it is implemented is also needed in global logistics – WEF is confident in this.

It is clear that the involvement of a blockchain on such a scale means the entry of companies that work with this technology to the multi-billion dollar market. This is not surprising: the blockchain was already able to create a whole new financial industry when this innovation was applied to transactions.

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(Featured image by photosforyou via Pixabay)

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First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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