The so-called “Crypto Valley” fails to denied permission from the government for a rescue package with a volume equivalent to 103 million US dollars.
According to the latest Reports, the government of Switzerland rejected a rescue umbrella over 103 million US dollars, which should the dramatic consequences of COVID-19 relieve.
According to local media on Wednesday of this week, companies from the so-called “Crypto Valley” in Switzerland, no loans in the amount of 100 million Swiss francs (equivalent to approximately 103 million U.S. dollars) to get.
In the young Tages-Anzeiger and in the Canton of Zug-based news platform, it is a Heinz Tännler designed rescue remained the plan for the support of Blockchain Startups since unsuccessful. Tännler the Finance Director of the Swiss Canton of Zug.
According to the latest report there was a call in the direction of the government, crypto-Startups and help the Region in obtaining necessary funds, the impact of the COVID-19-to mitigate the pandemic. The proposal was aimed at a package to a state Fund to distribute loans up to 10 million Swiss francs to Blockchain Startups.
The Crypto of the assets of the Fund accessible approach would have provided loans, which provided for a conversion into shares, as it was called in the Tages-Anzeiger.
Platoon chief financial officer had searched for fresh resources
Tännler had placed a request on the way to the stimulus package to expand in April, with a volume of 154 million francs.
The government should Fintech package-company will not help, however, Tännler said that the previous capital injection equivalent to 158.5 million US dollars would be sufficient to help crypto start-UPS. Also those suffering according to his statement, under the economic turmoil under the money crisis.
In the report of the local media, it means that the property Fund was supposed to benefit from various funds and local contributors. Among the donors, the local government, private investment and guarantees of the Federal government.
The Swiss Blockchain Federation had, according to a survey warned, 79.8 % of the Crypto Valley-based crypto-Startups would be “within six months, probably going bankrupt.“
88.2% of a total of 160 crypto-company had stated that only state support could Corona-induced economic downturns, and associated closures to prevent.
The report said in addition, 68.3%, and more than two-thirds of the applicants for state loan did not obtain the desired financing. As a result, the company will have to look for Survival elsewhere for funds.
Heinz Tännler, incidentally, is also a member of the Swiss Blockchain Association. He had warned, “the Crypto Valley and the entire Swiss Blockchain-scene is threatened because of the pandemic and its associated limitations and uncertainties, existential”.
The Canton is considered to be particularly crypto friend and as a centre of innovation. By its special approach to the regulation of the Region’s many Blockchain had attracted start-UPS and investments in this sector.
