The adaptation of cryptocurrencies is instrumental in increasing confidence in the technology and new world of digital currency. One of Switzerland’s banks has announced that it will execute an initial coin offering on the Ethereum Blockchain to sell its own coins.
One of the largest regulated banks in Switzerland, Dukascopy Bank, announced last week that it intends to launch an ICO on the Ethereum Blockchain. At present, the bank is awaiting approval from the Swiss Federal Financial Market Supervisory Authority to meet the legal requirements for an ICO in order to avoid any problems afterward.
The bank plans to spend a total of 20 billion Dukascoins to expand its mobile banking. Every customer who signs up for a mobile checking account and/or for the use of the banking app “Connect 911 Messenger” should receive 5 Dukascoins for free as a reward.
Bank customers can then freely transfer these tokens within the ecosystem. The bank continues to think about setting up a kind of “marketplace” where Dukascoins can be offered for sale and purchase.
Furthermore, Dukascopy will offer a deposit service for Dukascoins. The coins released by Dukascopy will be paid to an MCA depot (MCA is a new type of Swiss bank account offered by Dukascopy). The MCA depot is always linked to the customer’s MCA account. Dukascopy allows customers to transfer Dukascoins via custody accounts free of charge.
The time horizon for the project should be 3 months, subject to regulatory approval. The bank has completed the white paper and all technical specifications, so the product is already well developed.
Dukascopy further claims that a stable coin, such as Tether, should be launched, which should carry the name “Dukasnotes”. It is not yet clear to which fiat currency this cryptocurrency will be based, but it is obvious that this will be the Swiss franc.
In addition, with a limited amount of available tokens and long-term growth, Dukascoins are expected to increase in value, serving not only as a means of payment but also as a speculative object:
“Dukascoins are designed as a crypto means of payment to be created in limited quantity to serve both as payment and speculation mean. Dukascoins are expected to gain in value due to limited supply.
Their initial purpose is to reward new clients in a promotional plan aiming at popularizing the Dukascopy Connect 911 messenger and associated Mobile Current Accounts of Dukascopy to a very wide extent.”
I am curious if and when the authorities will give the green light and how the further development of this project will progress.
Author: Marko Vidrih