The Swiss National Bank (SNB) plans to pilot a wholesale central bank digital currency (CBDC) on the Swiss SIX digital exchange. Chairman Thomas Jordan stated that the pilot is not just an experiment, but rather real money equivalent to bank reserves, aimed at testing transactions with market participants. However, Jordan expressed caution regarding retail CBDCs, citing their potential risk to the financial system and the difficulty in controlling their use. In the background, central banks worldwide are racing to develop their CBDCs to sustain the fiat monetary system. The Bank of International Settlements has urged countries to expedite CBDC development due to concerns about cryptocurrencies and stablecoins. As fiat currencies lose value rapidly, governments and central banks face challenges in convincing citizens to keep cash in banks. In the UK, inflation is higher and more persistent, adding to the burden on mortgage owners. The potential CBDC rollout in the UK aims to address consumer concerns, including privacy through zero-knowledge proof technology. However, CBDCs are ultimately another form of fiat currency, which historically have all failed. Bitcoin, in contrast, exists outside the traditional system and is seen as sound money with a fixed supply, offering protection against government manipulation and confiscation. Citizens are encouraged to educate themselves about this asset for their future.
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