It seems rather paradoxical that Switzerland is both a hub for sustainability and an energy-gobbling blockchain hub.
The latest data from Switzerland’s Department of Finance underscores the growing importance of blockchain and fintech for the country’s financial sector. At the same time, sustainable investments are high on the agenda in Switzerland, the two seemingly at odds with each other.
The financial industry continues to be one of the most important sectors in Switzerland, even as other areas of the economy have grown more strongly, a report compiled by the State Secretariat for International Financial (SIF) showed.
Lower Share of GDP
The contribution to the Swiss economy from financial and insurance services increased slightly to CHF 66.9 billion in 2021 compared with CHF 64.4 billion a decade ago. At the same time, Switzerland’s GDP expanded more rapidly.
Employment figures show this as well. Most recently, around 212,000 people worked in the sector, compared with around 216,000 ten years ago. Only outside the core financial sector did employment grow in the last decade, from around 50,000 to 63,000.
According to the data, sustainable investments showed steep growth, their volume growing by 31 percent last year to over 1.5 trillion Swiss francs, according to a market survey conducted by Swiss Sustainable Finance (SSF).
Switzerland has developed into a hub for startups in blockchain technology and fintech. The number of companies has grown to 1,128 in 2021 from 960 in the previous year, employing 6,002 people compared to 5,184 in 2020.
According to a study, the number of fintech companies stagnated in 2021, but the volume of business nevertheless increased.