PostFinance wants to drive the development of a digital franc and is entering into partnership with Swiss Stablecoin Ltd for this purpose. As part of a joint proof of concept, a digital image of the Swiss franc will be released for specific use cases and tested for practicability in PostFinance’s test environment.

In conjunction with Swiss Stablecoin Ltd (SSC), PostFinance plans to launch a stablecoin for Switzerland – in other words, a digital franc. The goal is to create a broadly supported payment method that will make the payment system in Switzerland simpler and more efficient. The digital franc will be based on open-access blockchain technology. As the first step in their new partnership, PostFinance and SSC are working with the association cardossier to conduct the proof of concept (PoC).

A catalyst for the digital economy

Stablecoins are digital currencies that are known for their value stability. They are backed 1:1 by a collateral value and reflect the exchange rates of national currencies − in this case, the Swiss franc. PostFinance is convinced that digitized business models will become increasingly important in the future and that Switzerland needs a digital franc. Benjamin Staeheli, Chief Business Unit Officer for Payment Solutions at PostFinance, says: “The particular benefit for customers is the programmability of the digital franc. By adding logic to payments, processes can be made more efficient and automated. This represents a high level of potential for innovation and could become a catalyst for the digital economy.”

SSC was founded in 2022 by former member of the National Council and Council of States Pascale Bruderer. SSC shares PostFinance’s ambition to create a currency with a digital franc that enables new functions and also enjoys confidence and broad acceptance among the population. “We are delighted that we have found the ideal partner for the project launch in PostFinance, a strong, innovative financial institution. Together, we want to do the pioneering work and ensure right from the outset that a digital franc will also bring real economic benefits,” says Pascale Bruderer, founder and Chair of the Board of Directors of SSC.

Cardossier as the first use case

PostFinance and SSC are testing the project as a joint PoC in a closed ecosystem. The first concrete use case will be the association cardossier, of which PostFinance is a founding member. cardossier is a platform via which all relevant information on the entire life cycle of a vehicle can be stored and transferred in a traceable and secure manner. Payments for services within cross-company processes during a vehicle’s life cycle represent the perfect test environment for the digital franc. Very small amounts are charged during the cardossier vehicle change process, which is why it makes sense to integrate a micropayment solution.

The goal of the PoC is to issue and redeem the digital franc via a Swiss bank’s network. SSC Ltd will provide the necessary infrastructure. This will form the basis for duplicating the process across other financial service providers in future, allowing a digital franc to be made available to the economy and the public at large on a step-by-step basis.

In addition to its goal of driving the development of the digital franc, PostFinance is also involved in other cryptocurrency-related projects. For example, PostFinance is engaged in the initiative launched by the Swiss Bankers Association, which is laying important groundwork by developing a Deposit Token for the Swiss financial center.