Swiss National Bank to Launch Pilot Wholesale CBDC Project

The Swiss National Bank (SNB) will soon issue a wholesale national digital currency on the SDX exchange as part of a pilot project, the chairman Thomas Jordan said, according to Reuters.

«This is not just an experiment. These will be real money, equivalent to bank reserves. The aim is to test transactions with CBDC with market participants», — an official explained.

The pilot project is for a limited period.

Jordan highlighted potential risks of retail CBDCs for the financial system and challenges in controlling their use.

«For now we are cautious. The central bank does not rule out that it may never implement a retail-oriented digital franc», — he added.

Andrea Maechler, a member of the SNB’s governing board, doubted the disappearance of cash in Switzerland.

«This is the only way retail households can store funds in an accessible form. This function should be supported regardless of the technology», — she explained.

As reported in November 2021, the SNB announced the technical readiness to launch a CBDC. Prior to that, central-bank officials had spoken of the absence of necessity for a digital franc.

In 2022, Jordan ruled out buying and holding Bitcoin as a reserve currency.