Recent market movements in the crypto space as well as traditional markets have been dramatic as investors of all sizes seek to maximize their liquidity in what they view as safe assets, such as cash.
Equity markets in the US dropped by 30%, bond markets started freezing up and oil prices fell through the floor with a price war started by Saudi Arabia and Russia.
In times such as these, the flight to so-called “safe havens” makes sense. However, with banks charging negative interest rates on holders of large amounts of USD, Euro and CHF, it is hard for savers to avoid losing money even as they move towards cash in a crisis.
This is where a stablecoin, a currency-backed blockchain-issued tokens, can shine. And in turbulent times, there is no safer haven than the well-respected and often sought-after Swiss Franc. And to be even more secure, there is the blockchain equivalent, the CryptoFranc (XCHF).
The XCHF is pegged 1-to-1 to the Swiss Franc, and thus holds the status needed to be considered a go-to asset. But it doesn’t need to be held in a bank account, where negative interest rates eat into savings. Indeed as a tokenized bond vehicle – fully backed by monthly audited, securely stored and insured physical bank notes, the XCHF currently offers a 0% interest rate with concrete plans during 2020 to introduce a positive interest rate.
Where to get the CryptoFranc
The CryptoFranc (XCHF) can be bought and sold (issued and redeemed) through the Bitcoin Suisse-owned daughter company, Swiss Crypto Tokens AG, for any major fiat- or cryptocurrency. It can also be purchased and sold on various crypto exchanges.
As it is issued as a ERC-20 blockchain token, you can hold it yourself on a hardware wallet or even a paper wallet (shown here) – or use any Ethereum compatible custodial or non-custodial wallet, including keeping it on your Bitcoin Suisse account or in Bitcoin Suisse Custody.
Even as the prices of major crypto assets such as Bitcoin and Ether dropped dramatically by nearly 50%, the three major exchanges where the XCHF is traded, Bitfinex, IDEX and Uniswap, saw trading volumes topping 800’000 USD, more than a 50-fold increase month-on-month.
What makes the XCHF such a secure, digital currency?
The CryptoFranc is fully-fiat backed and audited monthly by Grant Thornton. The cash behind the XCHF is not deposited in a bank, but rather held in physical banknotes stored in a Swiss vault. That means that for every XCHF on a digital wallet, there is a physical Swiss franc in existence.
There could not be a better way to park your crypto portfolio in a safe, secure, Swiss liquid asset until market swings play themselves out – or until positive interest rates return.
For more information, including a full list of exchanges offering XCHF, visit the Swiss Crypto Tokens website.
