Swiss online retailer Digitec Galaxus is poised to accept a new cryptocurrency for payments. A test transaction has shown the DCHF stablecoin, issued by Swiss bank Sygnum, to be just as viable as bitcoin and other cryptocurrencies already accepted by Switzerland’s largest online retailer.
This content was published on
3 minutes
I write about the rapidly evolving artificial intelligence technology and its possible impacts on society.
Originally from England, I spent some time at the BBC in London before moving to Switzerland to join SWI swissinfo.ch.
Digitec Galaxus, has accepted the likes of bitcoin for more than a year using the services of Danish cryptocurrency payments platform Coinify. But as the value of many cryptocurrencies can fluctuate greatly in a short space of time, their use for everyday shopping has been questioned.
Earlier this year, Zurich-based Sygnum released a digital currency backed by Swiss francs deposited at the Swiss National Bank, and whose value is therefore locked to a corresponding amount of francs.
Galaxus, one part of the Digitec Galaxus group, recently conducted a DCHF test transaction along with Sygnum and Coinify. The trio claims that the experiment is the “world’s first” e-commerce transaction using a stablecoin issued by a regulated bank.
The system has the potential to “revolutionise the [$3.5 trillion] e-commerce industry” by forging “direct connections between consumers and online retailers”, the consortium says.
But it will still likely come at a cost to consumers. Coinify currently charges a 1.5% conversion fee to customers who use a range of cryptocurrencies to pay for goods on Digitec Galaxus. This compares to a 2% fee for using Paypal at Digitec Galaxus and a 2% fee plus CHF1.00 for invoicing. The retailer absorbs credit and debit card fees itself.
In February, Digitec Galaxus stopped using the Swiss payment app Twint, saying that it would not accept an exorbitant hike in fees.
Various cryptocurrency projects are vying to provide an alternative consumer payment method but have so far not taken off in large volumes. Cryptocurrencies have so far accounted for around CHF1 million in sales at Digitec Galaxus out of the more than CHF1 billion in annual turnover.
No date has yet been set for when DCHF will be available at Digitec Galaxus.
Several other experiments with digital currencies have been taking place around the world, some involving Swiss entities. Sygnum, which also has a base in Singapore, took part in the “Ubin” project to create a digital currency backed by the Singaporean central bank.
The Swiss SEBA bank has been chosen by the Banque de France, among other partners, to test its central bank digital currency in the financial system.
The Swiss National Bank (SNB) is collaborating with the Bank for International Settlements in an innovation hub to explore use cases for central bank digital currencies (CBDCs).
What factors should be taken into account when inheriting Swiss citizenship abroad?
Should there be a limit to the passing on of Swiss citizenship? Or is the current practice too strict and it should still be possible to register after the age of 25?
Is your place of origin, your Heimatort, important to you?
Every Swiss citizen has a Heimatort, a place of origin, but many have never visited theirs. What’s your relationship with your Heimatort? What does it mean to you?
Swiss study predicts rise in global antibiotic use in farming
This content was published on
Global antibiotic use in livestock farming could rise by 2040, says a study by FAO and the University of Zurich. Switzerland expects minimal change.
Initiative calls for 36-week parental leave in Switzerland
This content was published on
The initiative proposes 18 weeks of non-transferable leave per parent, to be taken alternately within ten years of implementation.
Over a quarter of Swiss Catholics consider leaving the church
This content was published on
In Switzerland 27% of Catholics have thought about leaving the church, according to a survey by the Sotomo research centre.
This content was published on
Following the Credit Suisse debacle, the Swiss Financial Market Supervisory Authority (FINMA) is adapting its organisation.
This content was published on
The Swiss Armed Forces are training their fighter jets in Bern to fly from a civilian base. The exercise at Bern Airport will last until Wednesday.
Plans materialise for new particle accelerator in Geneva
This content was published on
Preparations for a huge new particle accelerator in Geneva have reached a milestone. After several years of work, a feasibility study for the project has now been finalised.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Sygnum bank creates digital version of Swiss franc for trading
This content was published on
Sygnum bank has launched a digital version of the Swiss franc (DCHF) to allow faster payments when trading a new breed of securities. The DCHF digital tokens will be backed by the corresponding amount of Swiss francs that Sygnum will hold at the Swiss National Bank (SNB).
Retail digital franc remains taboo for Switzerland
This content was published on
Responding to a parliamentary question, the Federal Council on Friday said an ongoing project to produce a digital franc that is restricted for use by financial players was a more sensible option than a cryptocurrency for people to buy their groceries or other goods. Its report acknowledged claims that digital currencies could make payments more…
Swiss central bank wary of Libra stablecoin impact
This content was published on
Speaking in Basel on Thursday, SNB chairman Thomas Jordan outlined the central bank’s thinking on digital currenciesExternal link. So-called stablecoins, which hold reserves of francs, dollars and other currencies in proportion to the amount of tokens issued, are much more likely to succeed as competition to traditional forms of payment, he said. This is…
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.