We have to look past the fact how the OLD currency system used to work. Everyone knows that paper money is not made for online transactions. So for a country to become the 'switzerland' of bitcoin does not necessarily have to depend it's ENTIRE economy on bitcoin, it can simply adopt it's traditional currency for day to day & physical use while adopting Bitcoins as the officially recognized currency for online transactions.
I see. So, Why isn't "The Internet" on the list?
Switzerland's economy is largely banking and finance-based. In order for something to become the "Switzerland of Bitcoin" it would need to base a large portion of it's economy on bitcoin services. If you mean by that, only online services, then why must there be a physical location at all?
I m not an all knowing expert or a guru, I m just saying what I think is right according to me, I could be probably wrong and hence I started this discussion.
My point : Just because the Internet came into existence didnt mean the SW radios went extinct.