Is the Future of Banking in Bitcoin?
Imagine a world where national banks, the very pillars of traditional finance, start buying Bitcoin. Sounds like a far-fetched dream? Well, Luzius Meisser doesn't think so. In a recent episode of the Defire Podcast, Meisser paints a vivid picture of this potential reality.
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A Bold Proposition
Luzius Meisser, a crypto valley legend, entrepreneur, and chairman at Bitcoin Suisse, made a bold proposition at the shareholder meeting of the Swiss National Bank: "Why not buy Bitcoin?" As he puts it,
"The Swiss National Bank should hold bitcoins in its portfolio. Because it makes sense. It's the digital gold and I think sooner or later, all the national banks will hold some bitcoins as a reserve currency and the bank that moves first has an advantage.”
Switzerland's Share in Bitcoin
Switzerland, contributing to 1% of the world's GDP, should ideally hold 1% of Bitcoin. This perspective aligns with the nation's reputation for managing one of the most stable fiat currencies globally.
The Vision of a Bitcoin ETF
But Meisser's vision doesn't stop there. Already back in 2013, when Bitcoin's market was a mere 100 million euros, he toyed with the idea of a Bitcoin ETF. He believed that if Bitcoin could be traded on recognized venues, it would gain more credibility and attract significant capital.
However, the path to integrating Bitcoin into traditional finance isn't without its challenges. Meisser discusses the Basel Committee's strict capital requirements for banks dealing with crypto, which he finds unreasonable. He mentions,
"Finma imposed very strict capital requirements and now the Basel committee is imposing even stricter capital requirements, which essentially say as a bank, if you issue a certificate and you owe someone a Bitcoin. Even if you have this Bitcoin present in the background, you still need an additional worth of Bitcoins in dollars in equity capital."
A Glimpse into Meisser's World
Luzius's journey into Bitcoin started . From co-founding a cloud storage company focusing on encrypted and secure data storage to investing in Bitcoin by 2011, his story is a testament to the evolving landscape of finance.
Aktionariat: The Future of Share Ownership
In the ever-evolving financial landscape, Luzius Meisser introduces a novel concept: Aktionariat. This innovative platform seeks to tokenize the equity of Swiss private companies, particularly those that aren't publicly traded yet. As Luzius explains:
"In Switzerland, we have a lot of companies with freely transferable shares. We have like 120, 000 AGs, whereas Germany only has like 10, 000... thanks to the new blockchain law it's possible to issue shares in the form of tokens.”
Stablecoins: The New Financial Bridge
Stablecoins have been making waves in the crypto world, offering a bridge between the volatility of cryptocurrencies and the stability of traditional fiat currencies. Luzius Meisser delves deep into this topic, highlighting the potential of stablecoins backed by tokenized shares of the companies that make up the backbone of an economy:
"Yes. And then this stablecoin would be backed by true economic value. And It could potentially be much more safe if the fate of these small companies is not correlated."
But Meisser's vision for stablecoins goes beyond the typical. He introduces the concept of the "Frankencoin," a Swiss franc stablecoin. Unlike other stablecoins, the Franken coin aims to be free from reliance on oracles, eliminating a potential point of centralization and vulnerability.
A Fun Anecdote
Did you know that in the computer game "Command and Conquer," the world currency is the Swiss Franc? Luzius Meisser recalls, "When I saw this, I thought, that's an interesting perspective, but why not? And I think the Swiss franc has a lot of potential."