Govt assists Struggling Swiss Crypto Valley
Switzerland’s “Crypto Valley” is in talks with the federal government for fixing a 100 million Swiss franc ($102.7 million) fund for helping the Fintech companies.
Swiss Crypto Valley is seeking for a 100 million Swiss franc bailout from the government https://t.co/7tE7zfCgfL
— Cointelegraph (@Cointelegraph) April 26, 2020
Cantonal Finance Director, Heinz Taennler, stated that the fund would consist of private investments, donations from state governments, and federal guarantees.
Favorable legislation and technology have made Switzerland a beautiful place for blockchain startups. Currently, however, the bulk of those Bitcoin and blockchain firms aren’t expected to survive the pandemic, as private equity investors are pulling out funding.
The report added that:
“Of the most important 50 companies operating within the region, only half said during a survey that they’re going to make it through subsequent 12 months under current conditions.”
Taennler said that the Swiss government recently announced that it’ll provide 154 million francs in credit guarantees for startups, but this may prove to be insufficient.
Many startups are unable to generate enough revenue to qualify for bank loans under the federal government’s COVID-19 aid package.
As Cointelegraph reported earlier, COVID-19 took a huge impact on the Valley’s local crypto ecosystem.