The Swiss National Bank (SNB) has recently announced plans to launch a wholesale central bank digital currency (wCBDC) pilot project with real money, according to a report by Reuters. The head of the SNB, Thomas Jordan, stated that the project is not just an experiment but is equivalent to bank reserves and aims to test real transactions with market participants. The wCBDC will be issued on the Swiss SIX digital exchange and run for a limited time.
On one hand, this move by the Swiss central bank indicates a positive approach towards the adoption of blockchain technology and digital currencies. Last year, Thomas Moser, SNB governing board member, told Cointelegraph that CBDCs could work well with decentralized finance. Additionally, SNB’s Project Helvetia successfully integrated a wCBDC into the back-office systems of five banks after completing a proof of concept.
However, on the other hand, there remains a level of skepticism among some Swiss officials about the issuance of retail CBDCs. Andréa Maechler from the SNB governing board said that the central bank does not foresee the replacement of cash in the country due to the risks involved. Moreover, the SNB’s chief economist, Carlos Lenz, previously expressed doubts about blockchain being a suitable platform for CBDC and that the country had no intention of issuing one.
As the Swiss authorities cautiously embrace the concept of wholesale CBDCs, the success of the pilot program may determine the future of retail CBDC adoption in the country. While the SNB’s wCBDC pilot project demonstrates a growing interest in exploring the potential benefits of digital currencies, it also highlights the ongoing concerns surrounding their implementation and eventual impact on traditional financial systems.
Source: Cointelegraph
