Swiss Central Bank and the decision on CBDC
Date: 2024-04-10 Author: Gabriel Deangelo Categories: BLOCKCHAIN
The administration of the Swiss National Bank (SNB) rejected participation in the program for issuing retail central bank digital currencies (CBDC), expressing doubts about their economic feasibility and financial prospects.
Position of the SNB Chairman
SNB Chairman Thomas Jordan stressed that the availability of existing payment methods offered by the private sector is sufficient to meet the needs of retail consumers and businesses.
He also expressed concerns about the possible negative consequences for the financial system that the launch of retail CBDC could bring, and ruled out the possibility of introducing a central bank digital currency for everyday use by the population.
Jordan emphasized the need to address a number of important issues, such as the terms of short-term overnight lending, interest rate setting, and creating a sustainable access architecture for financial institutions and their customers.
Prospects for CBDC Wholesale Trade
On the other hand, SNB is considering the potential for its wholesale CBDC business and is exploring opportunities for interbank transactions.
SNB has been participating in a pilot project for the use of wholesale CBDCs for financial institutions since December last year, in which the largest Swiss financial institutions are also participating.
