The Swiss “cryptocurrency valley” is in talks with the federal government to create a fund worth as much as 100 million Swiss francs ($ 102.7 million). The goal is to help companies in the area FINTECH.
Cryptocurrency valley with the support of the authorities
The Swiss “cryptocurrency valley”, a fintech-friendly region from the digital currency market, located near Zurich, wants to obtain as much as 100 million Swiss francs (102.7 million dollars) from the federal government. In accordance with Article Bloomberg from April 26 this fund will be allocated to rescue fintech companies that may have problems now.
The financial director of the Canton, Heinz Taennler, told the media that the fund would include funds from private investment, but also from local governments.
Today, the favorable legal environment makes Switzerland an attractive place for startups from the market blockchaina. However, there are now fears that most of these companies will not survive the pandemic and the economic crisis it has caused. The point is that investors are withdrawing their funds from the markets.
Bloomberg added that:
“Of the 50 largest companies operating in the region, only half said in the survey that they would survive the next 12 months under current conditions.”
How to survive the crisis?
During the crisis, investment in modern technologies is certainly not a priority. However, the Swiss government announced earlier this week that it would provide 154 million francs in loan guarantees for startups to help them survive this hard time. Except it turns out to be insufficient now, as Taennler told the media.
Many startups currently do not generate enough income to qualify for the bank loans as part of the federal government’s COVID-19 crisis assistance package.
These companies could theoretically try to raise funds from the market, e.g. using type financing models AND WHAT whether HUNDRED, but it is very doubtful that such steps would be successful at a time of crisis (or actually just beginning).
However, innovative startups should receive help from governments. Their solutions can help in getting out of recession, and alone blockchain modernize many issues of our business life.
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