Switzerland’s crypto valley is the stretch of land located between Zurich and Zug. The area is Switzerland’s version of Silicon Valley from the US. The country is home to one of the most decentralized governments, making it a prime attraction for those looking to operate in such a system. Besides Switzerland, other parts of the world that are keen to a decentralized system are Malta, Silicon Valley, New York, Gibraltar and Singapore. Seeing Zug for the first time, one may not expect that such a place is looked upon as something similar to Silicon Valley.
The Term “Crypto Valley”
The term of the crypto valley was formed back in 2014 when the founder of blockchain platform Monetas, Johann Gevers, laid the groundwork for creating a global hub for firms that will deal with blockchain. The official term was coined by ethereum co-founder Mihai Alisie.
Switzerland’s political system provides great power to its citizens, who can challenge a current law and propose a change. This ability given to the people is what led to the legalization of online platforms such as the online casino Starvegas in the country. Also, this “direct democracy” is also what led to the area of Zug becoming a major crypto hub and embracing blockchain technology, as well as developing businesses that revolve around this technology.
What Has Led to Its Development?
Each of the 26 regions in the country holds a great level of control over their laws. What greatly contributed Zug to becoming Switzerland’s crypto valley was the progressive and supportive political system alongside the attractive location for foreign investors. Blockchain-based projects can take great advantage of secure legislation with low taxation and business-friendly regulations also being something to consider.
Much of Switzerland’s economic development has been made possible through the country’s intellectual potential alongside education and intensive research and development programs. Many ask the question if Switzerland’s Crypto Valley will overtake the USA’s Silicon Valley. In the last few years, many companies based in Silicon Valley have faced a large amount of pressure from authorities worldwide because of reasons for those large tech companies becoming too big and they are expected to review their processes to remain compliant with local markets.
A Direct Comparison Cannot be Done Yet
Countries around the world are on the backs of California’s giant tech companies and are expecting them to provide better security and privacy policies as well as having a lower impact on the environment.
With the Crypto Valley in Switzerland, everything is still young and the companies that are already there are still in their infancy with their sole focus being on developing new technologies that involve blockchain and cryptocurrency products.
At the moment, comparing the two tech valleys is not fair, as one of them has been around for quite some time while the other one is still finding its footing. However, what can be compared is analyzing the philosophy that the companies located in each of the valleys operate by. In October of 2018, a public-private partnership for strengthening blockchain was created known as the Swiss Blockchain Federation.
Later in December, the Federal Council adopted a report regarding the legal framework in the financial sector. This legal framework was made for distributed ledger technology and blockchain.