Switzerland’s “Crypto Valley” is seeking a 100 million Swiss franc ($102.7 million) fund from the federal government for helping the fintech companies.
However, Heinz Taennler, the Cantonal Finance Director, said that the fund would consist of private investments, contributions from local governments, and federal guarantees.
Currently, the majority of these Bitcoin and blockchain firms are not expected to survive the pandemic, as private equity investors pull out funding.
The report stated:
“Of the biggest 50 companies operating in the region, only half said in a survey that they will make it through the next 12 months under current conditions.”
Government Aid for FinTech Crypto startups in Switzerland! is all kinds of oxymoronic 🤦♂️😂 https://t.co/Vsc5j1MOtz — KiwiBits Crypto (@Kiwi_Bits) April 26, 2020
Taennler said that last week, the Swiss government announced that it will provide 154 million francs in credit guarantees for startups, but this will prove insufficient.
As per the report, many startups don’t generate enough revenue to qualify for bank loans under the federal government’s COVID-19 aid package.
Thus, COVID-19 took a huge influence on the Valley’s local crypto ecosystem.