“Our CHFD stablecoin will lead to the development of new use cases”

The SNB is taking a pioneering role in the field of central bank digital currencies. It issues tokenized central bank money for financial institutions, what’s known as wholesale CBDC, and is driving a pioneering initiative with the Helvetia project. However, this is only available to financial institutions. The SNB sees the private sector as being responsible for retail. 

From a regulatory perspective, the decision is understandable. Maintaining the two-tier monetary system will create important conditions that will enable the private sector to take the lead in introducing a digital franc. Swiss Stablecoin is taking up this challenge.

Our solution is designed to complement the existing payment infrastructure and addresses two key issues: Firstly, reducing transaction fees. The CHFD, the stablecoin from Swiss Stablecoin, can be integrated into digitalized financial and payment processes without costly intermediation and media disruptions. This benefits the Swiss real economy at the expense of global payment service providers.

Secondly, new functions and, as a result, a surge of innovation in the payment sector. The CHFD acts as a catalyst for innovative applications and business models. It offers immediate “delivery versus payment” transactions and enables conditional and earmarked payments as well as embedding in intelligent ecosystems.

Our focus is on adding value for the real economy; we see the CHFD as a payment method for everyday use. It will be easy for customers to use in stores or in e-commerce and very similar to the payment processes they are accustomed to. But the transaction costs will be significantly lower. We also see great potential in automated billing processes. As soon as certain verifiable conditions are met, a CHFD transaction can take place. This is likely to be interesting when it comes to automating logistics chains or in the pay-per-use sector, as well as for feeding energy from solar systems into the grid, for example. The CHFD eliminates process interruptions around payment and makes payments substantially cheaper and faster. We believe that many new use cases will develop on the basis of the CHFD and its functionalities. For example, information stored in the wallet can be integrated into the payment process. This can simplify login procedures or enable automatic age verification when buying alcohol.

When will the CHFD be launched?
he more important question is not when, but how: in strong partnerships that enable nationwide acceptance and reach.

Is SSC still looking for investors or are you fi nanced for the next 24 months?
For a young and growing start-up, capital requirements and raising the associated capital are always key issues that are constantly at the top of the agenda.

Has SSC defi ned specifi c target sectors for the use of its stablecoins?
No, we are consciously committed to widespread accessibility and a broad- based ecosystem.
 

Which blockchain is the CHFD token based on?
Our technology platform is based on Ethereum with Polygon/Validium as a layer 2 solution for fast and low-cost transactions. However, we are working on making the solution multichain-ready to eventually become chain-agnostic.

Does SSC intend to establish partnerships with large Swiss banks?
Yes. In the past, we have worked on a POC in partnership with PostFinance.
For the implementation model, cooperation with Swiss banks is key. On the one hand, they will offer the digital franc to their customers, and on the other hand, that’s where our funds are deposited.

in the development of the CHFD? We want to see the fi nancial industry and the real economy working together to com- plement each other. SSC has no direct rela- tionship with the end customer. It operates a decentralized platform for companies that want to offer payments with the digital franc. The role of retailers is to accept the CHFD and promote it as a means of payment. With the prospect of substantially lower trans- action costs, both retailers and industry are showing a great deal of interest in a new, digital payment method. We see banks as the primary channel for accessing the CHFD – users will get the new currency from their bank. This means the banks will continue to have contact with 

We fi nance the operation of the CHFD infrastructure partly from returns on de- posits. Each CHFD is backed 1:1 with Swiss francs deposited in regulated Swiss banks. Other income comes from transaction fees. These are very low for standard purchasing transactions. For transactions involving additional features, such as automated payment of incoming freight, the transaction fees might be higher. We have created a detailed business case that allows us to simulate various scenarios. 

We have laid the foundations for the introduction of the CHFD and positioned ourselves as a highly relevant player in the field of digital payment methods in Switzerland. Firstly, we operate a technology platform that meets regulatory requirements and is designed to be highly efficient. And secondly, we have drawn up a comprehensive overall concept for how the CHFD will be integrated into the existing payment landscape, how payment processes will work and what adjustments will be necessary on the retail side. We are in advanced talks with large Swiss companies that we want to win as partners for the CHFD. We will go live with the CHFD as soon as we have secured the partnerships. As far as regulation is con- cerned, there are signs of new regulation for tokenized money. Although we can go ahead with implementing the new payment method under the existing legislation, regulation adapted to it would, of course, be very good news for us. 

No. Our focus is on a Swiss solution – from Switzerland, for Switzerland. 

Yes, absolutely. Our solution uses smart contracts; these are already integrated. 

Easy-to-use and secure wallets are an im- portant part of the CHFD ecosystem. We are committed to an open system with a range of different wallets so users can choose ac- cording to their needs.