A pilot project for wholesale central bank digital currency (wCBDC) has been announced by the head of the Swiss National Bank (SNB).
According to Thomas Jordan, the bank’s chairman, the project will start “soon.”
Swiss National Bank Central Bank Digital Currency
Jordan was quoted as saying at the Point Zero Forum in Zurich on June 26 that the wCBDC would be issued on the Swiss SIX digital exchange and would only last for a brief period of time.
The biggest stock market in Switzerland is likewise administered by the SIX Group.
According to the report, Jordan stated:
“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.”
Thomas Moser, a member of the Swiss National Bank governing board, stated last year that CBDCs could coexist alongside decentralized finance.
Swiss and Blockchain Technology
As part of Project Helvetia, the Swiss National Bank incorporated a wCBDC into the back-office systems of five banks early last year. This followed the completion of a wCBDC proof of concept.
That represented a shift from the stance taken a year earlier by Carlos Lenz, the top economist of the Swiss National Bank, who claimed that blockchain was an inappropriate platform for CBDC and that the nation had no intention of creating one.
At a different Point Zero Forum event this year, SNB governing board member Andréa Maechler stated that the central bank does not anticipate the replacement of cash in the nation.
According to Maechler’s comments from the previous year, SNB officials “believe the risks outweigh the benefits” in regards to a retail CBDC.
Even while Thomas noted, “We are a little bit prudent at the moment,” he did not completely rule out the launch of retail CBDC.
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