Swiss Central Bank to Research CBDCs
- The Swiss National Bank will work together with the SIX Digital Exchange to explore how CBDC’s can be integrated into a DLT platform.
- DLT-based tokenized assets and CBDC’s could stimulate new financial innovations, as well as reduce counterparty risk.
The Swiss National Bank (SNB) in Bern, Switzerland on August 18, 2013. Shutterstock
The Swiss National Bank (SNB) has partnered up with the SIX Digital Exchange (SDX) to explore how Central Bank Digital Currency (CBDC) can be used in the settlement of tokenized assets, SDX announced on 8 October.
According to the announcement, SDX will be working on a proof-of-concept for the study in collaboration with Switzerland’s central bank and the Bank of International Settlement’s (BIS) Innovation Hub Centre
As part of the effort, SDX will provide its platform as a way to explore how CBDCs can be integrated into a Distributed ledger Technology (DLT) platform.
The CEO of SIX, Jos Dijsselhof, said:
“We are pleased to contribute to this initiative and, through SIX Digital Exchange, to explore the technological possibilities with which the SNB could support token-based financial ecosystems in the future by providing digital central bank money for financial market participants.”
The press release further noted that a DLT-based tokenized assets and CBDCs have the potential to reduce counterparty risk, as well as stimulate the creation of new financial innovations.
SDX will also explore the technical options around the digitization of the Swiss franc, and the connection of the existing Swiss Interbank Clearing System.
Thomas Zeeb, Head of Securities and Exchanges at SIX, said:
“Our proof of concept on the subject of digital central bank money for financial market participants on DLT platforms will not only provide technological insights. but will also send an important signal to all market participants to take steps to explore DLT technology and digital assets.”
Bank in June, an executive of the Bank for International Settlements, also known as the central bank for central banks, said that BIS has been supporting other banks in their effort to research and develop a CBDC.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- Planned for 1 April, the CBDC trial will involve real consumers and real transactions, though they will be limited to a certain number of customers and transfers.
- The pilot, however, will not be opened to the general public in its first phase, and will only be opened to customers chosen by the 13 participating local banks.