The Swiss Central Bank will partner with the Bank for International Settlements (BIS) to test its digital central bank money. According to the information obtained, test studies will start towards the end of this year.
The Swiss National Bank (SNB) and the Bank for International Settlements (BIS) will test digital central bank money (CBDC) projects towards the end of this year, according to The Paper. According to the statement made by BIS official Benoit Coeure at the Bund Summit held in Shanghai, the proof-of-concept work of the project will be completed at the end of this year.
They want to open beyond the border
Coeure explained the benefits of proof-of-concept work. Thanks to this study, banks in Switzerland will be able to examine the uses of digital central bank money at the retail level. In addition, this will facilitate the traceability of compliance with existing payment systems.
BIS and SNB argue that digital currencies should not compromise monetary or financial stability. SNB has a statement on the subject in the past. According to the SNB’s statement at that time, the new digital currency will also facilitate payment between financial institutions with tokenized assets.
According to the authorized name, BIS plans to continue its digital currency studies at a global level. Coeure announced that they are planning to work with several central banks, including Hong Kong Monetary Authority and the Bank of Thailand.
Cryptocurrency friendly country
There was positive news about cryptocurrencies in the past months from Switzerland, which will develop a blockchain-based digital currency. The news was presented under the name of a new financial reform. With the reform, the way for companies in Switzerland to create digital shares has also been opened.
Thanks to these reforms approved by the Swiss Assembly of States, it is thought that Switzerland can become a pioneer in the field of cryptocurrency. Switzerland, which has been following cryptocurrency-friendly policies for the past few years, also turned its own city of Zug into a Crypto Money Valley.