Swiss central bank and BIS to begin CBDC testing

The Swiss National Bank and the Bank for International Settlements (BIS) will begin testing the national digital currency (CBDC) by the end of this year. The plans were announced by Benoît Coeuré, head of BIS’s innovation hub, as reported by The Block citing local media.

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According to the official, by the end of 2020 the project should enter the proof-of-concept phase. This will lay the groundwork for continuing experiments with CBDCs aimed at retail customers. The tests will examine interactions with existing payment systems and regulatory compliance controls.

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Coeuré later hopes to join the initiative of monetary regulators in Hong Kong, Thailand and other countries. Their participation would enable testing of national digital currencies in cross-border payments.

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The Swiss National Bank is part of a group of seven central banks worldwide that have joined forces with the BIS to study CBDCs.

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Earlier in October, the group prepared a report outlining the fundamental principles and key characteristics of national digital currencies.

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What is central bank digital currency (CBDC)?

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