The Swiss National Bank (SNB) has announced plans to issue a wholesale central bank digital currency (CBDC) on Switzerland’s SIX digital exchange as part of a pilot project. Unlike retail CBDCs for the general public, a wholesale CBDC is designed for financial institutions to use for interbank transactions. SNB Chairman Thomas Jordan stated that the digital currency would be “real money equivalent” to bank reserves and the objective is to test real transactions with market participants. However, he did not rule out discontinuing the project in the future. Switzerland’s pursuit of a wholesale CBDC sets it apart from its European neighbors, the UK and the EU, which have focused on a retail option. The country’s financial sector has been on a decline, accounting for a decreasing share of GDP. Meanwhile, the European Central Bank (ECB) recently backtracked on plans to make its digital euro programmable, despite earlier comments suggesting limited control over spending.
Continue reading on Beincrypto.com
By
By
By
By
By
By