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Swiss National Bank rejects public digital currency

The Swiss National Bank (SNB) has ruled out issuing a central bank digital currency (CBDC) for everyday use by the public. SNB Chairman Thomas Jordan said current payment options offered by private companies are sufficient …

The Swiss National Bank (SNB) has ruled out issuing a central bank digital currency (CBDC) for everyday use by the public.

SNB Chairman Thomas Jordan said current payment options offered by private companies are sufficient for consumers and businesses. He also expressed concerns that a public CBDC could disrupt the existing financial system.

However, the SNB is exploring the potential of a wholesale CBDC, a digital form of Swiss francs used for transactions between banks.

A pilot project last year involving UBS and other institutions successfully settled bond issuances using wholesale CBDC. This suggests that a wholesale CBDC could improve efficiency and security in settling financial transactions.

Before implementing a full-scale system, the SNB needs to address issues such as overnight holding, interest rates, and access to financial institutions. The bank is also exploring using wholesale CBDC for repurchase agreements and SNB bills.


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