Oswald Gruebel is the most influential businessman in Switzerland and he feels that fiat currency is becoming worthless. According to Oswald, the fiat money is attracting negative rates and hence does not hold as much value in the market.
In his career, Gruebel had managed two of the most prominent banks UBS Group and Credit Suisse in Switzerland successfully. Therefore, his opinion on the future of fiat currency holds value in these times.
In recent years, Cryptocurrencies or virtual currencies have been the centre of attention globally. Many governments are either restricting, regulating, banning or creating their own cryptocurrency. A decade ago, when Bitcoin, the first cryptocurrency, was introduced to the world, no one knew it would have such an impact on the value or future of the fiat money.
There have been several reports shared by fintechcryptonews.com about various steps taken by governments to regulate the cryptos like the Crypto Fund Manager Regulations in Hong Kong, U.S. Feds asked to work on creating a national crypto, Germany’s plan to introduce Digital Euro and more.
During his recent interview with NZZ am Sonntag, a swizz newspaper, Gruebel said that Fiat money is obsolete and it does not possess the same value it used to due to the negative interest rates and that is why people are looking for alternatives. He also asserted that as long as the negative interest rates prevail, there is no scope for fiat currency.
In 2015, the Swiss National Bank had imposed sub-zero interest rates to limit the appreciation of franc and claimed that it is in the best interest of Switzerland’s economy. However, this hasn’t done anything for the economy and banks across the country are suffering. Credit Suisse is currently charging is wealthy customers to hedge against the negative interest rate effect on financial institutions. Credit Suisse is one of the banks at the centre of this catastrophic doom. It is important to note that once Switzerland was abuzz with the financial activities.
Oswald feels that the foreign media has grabbed this as an opportunity and is highlighting the shortcomings. There is nothing worse than a tainted reputation, he says. Oswald’s comments come at a time when financial experts worldwide are questioning the future of fiat money and speculating if it’s coming to an end. Not to forget that the central banks are constantly competing to provide lower interest rates and driving people to spend more and save less. This has resulted in Switzerland adopting blockchain technology and cryptocurrencies. Now, it is known as the global hub of Crypto and Blockchain.
World’s most talked about and yet to be launch Crypto, Libra of Facebook is hosted by Switzerland.