Distributed Ledger Technology (DLT) is opening up huge opportunities for financial sectors all over the world. One country that is making headway with distributed ledger technology is Switzerland. Leading the way in DLT and blockchain, Switzerland is locking into the considerable potential for innovation and enhanced efficiency that is on offer.

The Federal Council has created a report that outlines Switzerland’s intention to establish itself and evolve as a leading, innovative and sustainable location for fintech and blockchain technologies. Distributed ledger technology, and the digitalisation that comes with it, is a key driver of innovation, structural change and competitiveness for the Swiss national economy. Focusing on the integrity and good reputation of the country, Switzerland wants to approach new technologies and opportunities proactively — while combating any potential abuses and threats.

Not only does the report centre around the benefits of distributed ledger technology, but it also acknowledges the importance of other types of digitalisation that will impact the finance sector. These include cryptocurrencies, artificial intelligence, big data, cloud computing mobile applications and many more.

In order for a country to become a successful leader in distributed ledger technology, and a new hub for fintechs, a regulatory approach to innovation must be taken. This Federal Council report outlines a bottom-up approach to technology preferences, the need for openness and dialogue, and how technologies should be applied to financial sector.