Swiss National Bank Chief Opposes Retail CBDC

Thomas Jordan, Chairman of the Swiss National Bank (SNB), expressed reluctance towards issuing a retail central bank digital currency (CBDC), citing potential disruptions to the existing monetary system and financial stability.

He emphasized the robustness of current private sector payment methods, deeming a retail CBDC unnecessary.

While cautious about retail CBDCs, the SNB is exploring wholesale CBDCs to streamline transactions among commercial banks.

Project Helvetia III, a pilot initiative involving major financial institutions, has demonstrated successful settlements using wholesale CBDCs, showcasing their efficiency and security benefits.

Despite these advancements, Jordan highlighted the need for further evaluation before wider adoption, particularly regarding issues like overnight holding of digital central bank money and access privileges for financial institutions.

He also noted the potential role of CBDCs in settling various tokenized assets, underlining their relevance in the evolving financial landscape.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.