Switzerland’s “Crypto Valley” is seeking a 100 million Swiss franc ($102.7 million) fund from the federal government for helping the fintech companies.
On April 26, it has been reported by Bloomberg that this fund is allocated to bail out the troubled 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.”
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.
Source: Cointelegraph | Image: Pixabay
Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.
Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.
We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.