Cryptocurrencies too primitive for national money

Cryptocurrencies and the blockchain technology they run on are currently far too primitive for the Swiss central bank to consider issuing a digital franc, says board director Thomas Moser.  Moser’s comments on Thursday reflected the previously stated stance taken by the Swiss National Bank (SNB) towards an e-franc version of bitcoin. But Moser went further at the Crypto Valley blockchain conference in Zug, likening blockchain in its present form to the “useless innovation” of compact discs (CDs).  The digitisation of music only became useful and practical once the innovation of streaming changed the landscape by providing a completely new model for consumers, Moser said. “Something similar has to happen with bitcoin,” he told an audience of blockchain enthusiasts. “People will only switch to something new if it works better or is cheaper.”  Moser’s comments followed hard on the heels of a scathing critique of cryptocurrencies by the Bank for International Settlements (BIS).