Moody’s, the global credit ratings agency, released a report on Monday highlighting how the proliferation of Blockchain would lead to the downfall of the traditional Swiss Bank. The absence of fees and the swift transactions that save time in Blockchain would allow for the underlying system of the Swiss Bank to become obsolete since its business model derives half its revenue from fees and commissions.
Swiss Banks are colloquially notorious for having stores of cash from every corrupt politician in the world due to the loose tax laws. The phrase ‘Swiss Bank’ is almost always used in a negative connotation. But the Swiss Bank industry relies on its fees and commissions to generate half its income. And Moody’s rates it third, behind the UK and Belgium, on the list of nations which handle the most cross border transactions relative to their GDP.
With Blockchain, there are minimal fees to transfer assets from one point to another. Since Blockchain is a fully digital ledger, it doesn’t distinguish between countries and continents, all of the users are randomly assigned numbers. However, Switzerland has already become a haven for Cryptocurrency trading and businesses. The Zug region of the country has been named ‘Crypto Valley’ for the large number of cryptocurrency businesses concentrated there.