Despite pilot, Swiss National Bank has no plans to launch CBDC

Blockworks
Blockworks

27 Jun 2023 8:29 PM

The central bank is exploring how to organize financial transaction settlements by developing a tokenized financial system....

  • The Swiss National Bank is set to pilot central bank digital currencies (CBDCs) to test transactions with market participants on the SIX Digital Exchange.
  • The pilot is meant to test a wholesale CBDC for “a limited time”.
  • The central bank sees signs in Switzerland of the development of a new financial ecosystem where transactions take place with tokenized securities and tokenized money.
  • The Swiss National Bank is exploring how to organize financial transaction settlements by developing a tokenized financial system.
  • Settlement in central bank money eliminates credit risk, which is important for financial stability.

The article has a neutral tone. It reports on the Swiss National Bank's exploration of a tokenized financial system and the pilot program for CBDCs. The article also highlights the benefits of settlement in central bank money for financial stability.

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You May Ask

What is the purpose of the Swiss National Bank's pilot program for CBDCs?What is the SIX Digital Exchange?What is the benefit of settlement in central bank money?What is the Swiss National Bank exploring in terms of financial transaction settlements?What is the difference between wholesale and retail CBDCs?

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