- Cryptocurrency expected to gain value due to limited supply.
- Convertibility of Dukasnotes into fiat guaranteed by guarantee fund subject to independent audit.
- Launch of Dukascoins expected in 2-3 months and Dukasnotes 2-3 months after launch of Dukascoins.
Dukascopy Bank, Switzerland’s self-proclaimed crypto-friendly bank, is ushering in a new era in the Swiss financial industry. The Swiss company has sought the approval of the Financial Market’s Supervisory Authority (FINMA) to conduct an Initial Coin Offering (ICO) intending to launch two cryptocurrencies: Dukascoins and Dukasnotes.
Dukascoins and Dukasnotes
According to the group’s concept paper, Dukascoins will be used as a cryptocurrency as a means of exchange with a limited supply while Dukasnotes will be issued as a Stablecoin. The company will initially reward its clients with Dukascoins in a promotional drive to create awareness of the Dukascopy 911 messenger and the bank’s new account dubbed Mobile Current Accounts (MCA).
The MCA account will afford Swiss and Foreign residents an affordable, secure, mobile and seamless banking service embedded into a modern messenger offering MCA clients an attractive platform for conducting transactions between themselves. The coins will be based on the Ethereum blockchain or a better one.
The Bank will issue a maximum of 20 billion Dukascoins with each new MCA client receiving 5 tokens, similar to what the new client’s introducer will receive while it will allocate another 10 coins to Dukascopy to finance the Connect 911 expansion plans.
The group plans to issue Dukasnotes without a limit using a series of smart contracts where each will be denominated by a fiat currency; and since there is no limit to the number of Dukasnotes to be issued, it will issue them against a contribution to the guarantee fund. This will provide a dynamic means of payment in terms of speed, ease-of-use, and affordability.
Swiss Banks Going Through a Crypto Frenzy
The cryptocurrency will mainly be used as a domestic and international peer-to-peer means of paying for goods and services online by those providing Dukascopy payment solutions.
Dukascopy Bank has prioritized Dukascoins, whose development is already at the stage of a white paper and technical specifications while that of the Dukasnotes is on the white-paper thesis stage. The bank expects the implementation of the Dukascoins to happen within 2-3 months while that of the Dukasnotes could take another 2-3 months following the implementation of the Dukascoins.
The Swiss bank’s announcement happens soon after Crypto Venture Capital (CV VC) has created a DLT incubator firm in Zug to help at least 60 blockchain technology startups launch their operations without going through the initial coin offering (ICOs) route. Smart Valor, a blockchain Startup also recently received FINMA’s approval to facilitate cross-border crypto finance.