Swiss National Bank SNB, one of Europe’s leading monetary authorities, announced that it will start the CBDC pilot application soon.
Speaking at an event in Zurich today, SNB Chairman Thomas Jordan stated that the digital currency will launch on the local stock exchange SIX. Speaking at the Point Zero Forum, Jordan emphasized that the new CBDC move is a counterpart. The digital Swiss Franc, which will be traded on the exchange, will be backed by assets equivalent to bank reserves, testing real transactions.
Asked when the digital Swiss Franc will become operational, the SNB Chairman replied “soon”. The central bank governor added that the CBDC design is underway.
Digital Currency and Risks
The ongoing digital currency studies in many parts of the world continue in Switzerland, Europe’s financial giant. Aiming to use the CBDC currency for wholesale transactions, SNB abstains from retail use by individuals. SNB Chairman Jordan commented that the application of digital money carries potential risks for the financial system.
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