- The Swiss National Bank (SNB) will launch a pilot for a central bank digital currency (CBDC) on Switzerland’s SIX digital exchange.
- This is not just an experiment; the objective is to test real transactions with market participants. The pilot project is set to start soon for a limited duration.
- Despite the bank’s exploration into digital currencies, SNB does not foresee cash disappearing in Switzerland. The bank aims to maintain the ability of households to hold central bank money, irrespective of the technology used.
The Swiss National Bank (SNB) has announced an audacious step into the future. In a recent conference in Zurich, the bank’s chairman revealed that SNB will be launching a pilot project to test a wholesale central bank digital currency (CBDC) on Switzerland’s SIX digital exchange, Reuters reports.
Read CRYPTONEWSLAND on
google news
This initiative is more than a mere trial; it’s a pioneering venture into the future of finance. “This will be real money, equivalent to bank reserves, and our goal is to conduct genuine transactions with market participants,” said Chairman Thomas Jordan. The pilot project is slated to begin shortly and will run for a limited period.
The introduction of a CBDC comes at a time when central banks worldwide are investigating digital versions of their currencies. This move is primarily to ensure that digital payments don’t fall solely under the purview of the private sector, particularly as the use of cash has decreased in some areas due to the COVID-19 pandemic.
Despite the push towards digitization, SNB remains cautious about public, or retail, CBDCs. The Bank has consistently expressed concerns over the potential risks that retail CBDCs could pose to the financial system and the difficulties in controlling their use.
Governor Andrea Maechler, speaking on a separate panel, said, “While we are actively exploring digital currencies, we do not see cash disappearing in Switzerland. It’s crucial that retail households retain the ability to hold central bank money, regardlessof the technology in use”.
Such a statement underscores SNB’s balanced approach to financial innovation. Even as they embrace the opportunities that digitization presents, they remain committed to preserving the traditional functions of the central bank.
Looking ahead, the launch of the CBDC pilot program by the SNB represents a significant stride forward in the evolving landscape of global finance. As more central banks consider similar steps, the future of CBDCs appears bright, promising to revolutionize the way transactions are conducted while ensuring the stability and security of the financial system.
The exploration and implementation of CBDCs are not just about staying current with the times, but about paving the way for the future of finance.
As the world becomes increasingly digitized, it’s essential for financial institutions to adapt and evolve, ensuring that they remain relevant and capable of serving their function in a rapidly changing economic environment. With this in mind, the SNB’s move to pilot a CBDC is a positive and welcome development.
Read also:
disclaimer read moreCrypto News Land (cryptonewsland.com) , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
