¶ Financial Centre and a New Value Order
¶ The Franc as the Last Stability Anchor
In a world where fiat currencies are losing trust, the Swiss franc could play one of its greatest strengths: stability through democratic control.
The logic is simple. The US dollar has lost over 99 per cent of its gold value since the end of the gold standard in 1971 [1]. The euro is struggling with structural problems of the eurozone. Cryptocurrencies are volatile. In this environment, the franc stands as one of the few currencies managed by an independent, democratically accountable central bank -- the Swiss National Bank (SNB) [2].
¶ Three Opportunities for the Financial Centre
¶ 1. Trustee of a New Value Order
Switzerland has been a trustee of wealth from around the world for centuries -- not because of banking secrecy or tax advantages, but because of legal certainty, political stability and institutional reliability.
In a world where AI decouples value creation from human labour, new forms of value storage will emerge: digital assets, tokenised real assets, AI-generated intellectual property. Switzerland can become the trustee of this new value order -- just as it has been for earthly wealth for centuries.
¶ 2. Digital Asset Custody
The Swiss financial sector is already deeply engaged with digital asset custody -- the secure storage of digital assets [3]. FINMA issued clear guidelines for crypto assets in 2019, making it one of the first supervisory authorities in the world to do so [4]. Banks such as Sygnum and SEBA (now AMINA) have received banking licences for digital assets.
The Canton of Zug -- "Crypto Valley" -- is home to over 1,000 blockchain and crypto companies [5]. This infrastructure is a head start that can be expanded:
- Regulatory clarity: Further development of the DLT Act, which came into force in 2021 [6].
- Institutional custody: Pension funds, sovereign wealth funds and family offices are seeking secure solutions for digital assets.
- Tokenisation: Real estate, artworks, infrastructure projects as tokenised investments under Swiss law.
¶ 3. AI-Powered Financial Services
AI is fundamentally transforming the financial sector:
- Risk assessment: AI models analyse credit risks more precisely than traditional scoring methods [7].
- Compliance: Automated anti-money laundering (AML) and Know-Your-Customer (KYC) processes.
- Asset management: Algorithm-powered portfolio optimisation for institutional and private investors.
- Fraud detection: Real-time analysis of transaction patterns.
Swiss banks can use these technologies to translate their traditional strengths -- discretion, precision, reliability -- into the digital world.
¶ The SNB Model for the AI Citizens' Fund
The SNB provides a model that is directly relevant to the proposed AI citizens' fund (see Citizens' Dividend):
- Independence: The SNB operates independently from day-to-day politics -- by constitutional mandate [2].
- Transparency: Regular reporting, clear accountability.
- Profit distribution: The SNB distributes annual profits to the Confederation and cantons -- a mechanism that can be transferred to the AI citizens' fund.
An independently managed AI citizens' fund, organised along the lines of the SNB, would continue the Swiss tradition of institutional independence -- and simultaneously ensure that AI-generated value creation benefits citizens.
¶ Risk: The Fiscal Gap in a Currency Crisis
The fiscal gap of 75 to 116 billion francs calculated in the thought experiment gains an additional dimension if the currency itself loses stability. In a scenario where digital currencies handle the lion's share of all transactions, the franc must defend its value through real economic output and institutional trust -- not through the printing press or debt.
The Swiss financial centre has the best prerequisites for surviving in this new world -- but only if it actively adapts rather than relying on past strengths.
¶ Conclusion
The combination of currency stability, regulatory clarity, technological competence and institutional reliability makes Switzerland the natural trustee of a world in which the boundaries between physical and digital wealth are blurring.
¶ Sources
[1] Mayer, T.: Die neue Ordnung des Geldes. FinanzBuch Verlag, 2014.
[2] Swiss National Bank (SNB): Legal foundations, Federal Constitution Art. 99.
[3] Swiss Bankers Association (SBA): Digital Assets Report 2024.
[4] FINMA: Guidelines on ICO enquiries, 2019.
[5] CV VC: Top 50 Report -- Crypto Valley, 2024.
[7] Bank for International Settlements (BIS): Artificial Intelligence in Financial Services.