The Swiss National Bank (SNB) is launching a pilot central bank wholesale digital currency (wCBDC) project. The project will be tested on the digital platform of the Swiss exchange SIX for a limited time.
The head of the SNB, Thomas Jordan, revealed to reporters during the Point Zero conference in Zurich that the bank is preparing to launch a pilot test of a wholesale CBDC shortly. Reuters reported this.
SNB’s partner in the pilot project will be the Swiss digital exchange SIX. The project will have a limited duration. Jordan also noted that the digital franc would be equivalent to bank reserves, and the project aims to test real transactions between different market participants.
As a reminder, the Swiss National Bank has already been testing a wholesale CBDC for interbank payments with the participation of five major TradFi representatives.
However, the Swiss authorities still need to voice plans for a full-scale issue of the state digital currency. According to Thomas Jordan, the SNB is particularly cautious about the retail version of CBDC because the potential risks outweigh the benefits. For example, according to Andréa Maechler, an SNB board member, the issuance of retail CBDC in the country could lead to the disappearance of cash, which is not the goal of the bank and the authorities. Therefore, SNB is not yet considering its implementation.
As a reminder, the Swiss Bankers Association (SBA) is considering deposit tokens as a means of payment, stressing that their use is safer and more efficient than other types of digital assets and can potentially boost the country’s digital economy.
