Swiss banks and stablecoins - Martin K. Hess (Swiss Bankers Assoc.)

The intersection of crypto and tokenization - and the crossover from crypto finance and traditional finance - is nowhere more clear than with the rise of stablecoins.
While a handful of USD-backed coins have dominated until now, the landscape, with MiCA regulations and institutional appetite, is now changing.
Except in Switzerland...
To better understand how banks view stablecoins, what they still struggle with and where the Swiss banking industry is quietly working to innovate, RULEMATCH Spot On host Ian Simpson sat down with Martin K. Hess, Chief Economist of the Swiss Bankers Association.

Show notes:

(00:00) Opening

(1:52) Intro

(2:54) What does SBA actually do?

(4:20) What do Swiss banks think of crypto?

(6:34) Do Swiss banks have a vision for tokenization?

(8:22) What Swiss banks really look for to do business in crypto

(9:53) The missing pieces for banks in crypto

(11:44) The need for an ecosystem

(14:01) Big banks vs small banks

(16:27) Will MiCA bring more pressure?

(17:50) Have Swiss banks taken advantage of the DLT Act?

(19:56) How Swiss banks are really planning for the future

(21:34) How Swiss banks approach MiCA activities

(23:10) Equivalence for crypto services between the EU and Switzerland

(24:43) New proposals for stablecoin regulation in Switzerland

(26:58) Defiitions of stablecoins (et al)

(28:25) Fully-backed money (stablecoins) vs fractional money

(30:22) New rules, new burdens for stablecoin issuers

(33:31) Risks for all kinds of stablecoins

(36:02) US vs Other currency-denominated stablecoins

(38:00) The danger of "two-speed" finance

(39:51) Competition's advantages

(42:47) Tokenization momentum from DTCC and others

(44:11) The "nitty-gritty" on tokenization use cases

(45:59) Policymaking around tokenized cash

(46:48) What the Swiss Bankers Assoc. would think about yield-bearing stablecoins

(48:52) Missing out on tokenized money market funds?

(51:17) The Swiss Bankers Assoc. Deposit Token PoC

(54:19) Reactions to the PoC

(56:01) CBDCs and governance in a deposit token setup

(57:23) Why do the PoC on a public blockchain

(58:27) Outlook for stablecoins in Switzerland
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ABOUT THE HOST: Ian Simpson is Director of Marketing and Communication at RULEMATCH as well as host of the RULEMATCH Spot On podcast, focused exclusively on the institutional crypto and digital assets industry. Previously he was Head of Marketing at Bitcoin Suisse and Head of Communications at the Crypto Valley Association. Ian is a veteran of the Swiss crypto and digital assets industry since 2017. His insights on the Swiss crypto and blockchain ecosystem have been featured in CoinDesk, the leader in blockchain news.
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Disclaimer:The information contained in this podcast about RULEMATCH AG (“RULEMATCH”) and any guest company is for general informational purposes only and should not be considered exhaustive. They do not imply any elements of a contractual relationship nor any offering.