SWITZERLAND - Electronic Swiss Franc?

Arno Froese

The Swiss government took a downbeat view of creating a central bank digital currency for public use, saying it could do more harm than good and destabilize the financial system.

“Universally accessible central bank digital currency would bring no additional benefits for Switzerland at present. Instead, it would give rise to new risks, especially with regard to financial stability,” the cabinet said.

The Swiss National Bank has taken a skeptical view of rolling out an electronic Swiss franc for use by the general public. The SNB is researching the broader use of digital central bank currencies alongside the Bank for International Settlements.

Central bank digital currency refers to money that a central bank would create in digital form and make available to the general public. It would complement existing forms of money such as banknotes and sight deposits commercial banks hold at the central bank.

Proponents think central bank digital currency will make payments more efficient, monetary policy more effective and the financial system more stable while reducing tax offenses and money laundering.

New European Central Bank President Christine Lagarde said that the euro zone should be “ahead of the curve” on the issue.

-www.reuters.com, 13 December 2019

Arno's commentary

Switzerland is probably the most prosperous country in the world. Their currency, the Swiss franc, has become an idol for those with sufficient cash reserves. For example, in 1970, one US dollar could buy 4.37 Swiss francs. Today, they are nearly on par. Doubtless, if one considers the past, the Swiss Franc will continue to climb in value in the not-too-distant future.

But What about digital currency? Will it endanger or help the Swiss franc? Opinions are diverse. The government seems not in favor, and some financial institutions think likewise. However, others point out the benefits: it would stabilize the financial system, while reducing tax evasion and money laundering.

It is our understanding that, in the long run, digital currency will be the key to the continued success of world economy. We again point to Revelation 13, which indicates that a totally new system will be implemented. Each person will be responsible for complying, and those who do not will be left out in the cold; no way to buy or to sell. In the end, Revelation 18:19 will be fulfilled: “And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.”

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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