Swiss Crypto Tokens has released a stablecoin pegged to the franc

Switzerland has issued new bonds that will help investors and blockchain startups mitigate the risks of cryptocurrency volatility. Swiss Crypto Tokens AG has issued a token backed by bonds pegged to the Swiss franc.

The first 10 million XCHF tokens, each worth one franc and backed by Swiss currency, have been sold and will be released on Thursday. The XCHF token will be among the stable coins that are created to reduce the risks of cryptocurrency volatility by linking to a more stable asset. 

Swiss Crypto Tokens AG offers crypto bonds, the price of which fluctuates only within the Swiss franc range. These tokens, purchased with francs, can later be converted into francs. They can also be purchased with Bitcoin and Ether.

“Volatility has become a barrier to the adoption of cryptocurrencies. After all, an effective currency should at least function as a medium of exchange and store value,” said Armin Schmid, CEO of Swiss Crypto Tokens, which is owned by the cryptocurrency company Bitcoin Suisse.

Bitcoin Suisse CEO Lucius Meiser compared the creation of stablecoins to the times when the country’s central bank had not yet been created, and individual Swiss banks printed money themselves.

Swiss law now prohibits the private issuance of Swiss francs or coins, but allows the issuance of digital currencies, Meisser explained.

 In Switzerland, you do not need a license to issue digital money, as in the European Union. This makes issuing fiat-backed cryptocurrency much easier in Switzerland than in other countries.

Issuing XCHF tokenized bonds does not require a license. But any platform that allows these coins to list will require a securities trading license. 

According to swissinfo.ch