At a conference in Zurich on Monday, the chairman of the Swiss National Bank (SNB) announced that the bank plans to issue a wholesale central bank digital currency (CBDC) on Switzerland’s SIX digital exchange as part of a pilot project.
A wholesale CBDC is one designed for financial institutions to make use of for interbank transactions. On the other hand, a retail CBDC is for the general public to use.
A “Real Money Equivalent,” Says SNB Chief
“This is not just an experiment, it will be real money equivalent to bank reserves and the objective is to test real transactions with market participants,” Reuters quoted the bank’s chairman, Thomas Jordan, stating at the Point Zero Forum.
However, the central banker did not rule out canning the project at some point in the future. “We do not exclude that we will never introduce retail [CBDCs] but nevertheless we are a little bit prudent at the moment,” he said.
Stablecoins and CBDCs are very similar in some respects. Learn the difference here: What Is a Stablecoin? A Guide to Asset-Backed Cryptos
In a fast-changing financial landscape, Switzerland has gone its own way. The country is neither in the EU, nor does it use the bloc’s currency, the Euro. Instead, Switzerland has its own currency, the Swiss Franc.
The alpine nation has been considering its digital currency for some time. In January 2021, the country patented such terms as “e-franc” and
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Author: Josh Adams
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