Switzerland’s “crypto valley”, a region that prefers financial technology near Zurich, applies to the Federal Government for a fund of CHF 100 million (USD 102.7 million). According to a Bloomberg report on April 26, this fund is intended to save weakening fintech companies.
The canton’s finance director, Heinz Taennler said the fund will consist of private investments, contributions from local governments, and federal guarantees..
Fintech startups have problems
Favorable legislation and innovation have made Switzerland an attractive place for blockchain companies. Currently, however Most of these bitcoin and blockchain companies are not expected to survive the pandemicas private equity investors withdraw funding. The report added that:
“Of the 50 largest companies in the region, only half said in a survey that they would survive the next 12 months under the current conditions.”
The Swiss government announced earlier this week that it would grant start-up loans totaling CHF 154 million.However, this will prove to be insufficient, said Taennler.
Many startups do not generate enough income to qualify for bank loans as part of the federal government’s COVID-19 aid package.
As Cointelegraph previously reported, COVID-19 had a huge impact on the valley’s local crypto ecosystem.