Swiss Banks Join Forces for Blockchain-Based Deposit Token
Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...
Leading Swiss banks – PostFinance, UBS, and Sygnum – have joined forces to explore the feasibility of a digital Swiss franc.
The initiative, spearheaded by the Swiss Bankers Association (Schweizerische Bankiervereinigung, or SBVg), aims to modernize Switzerland’s financial system and strengthen its competitive edge in the digital economy.
The project, known as “Digitale Währungen”, or in English “Digital Currencies”, garnered support from large Swiss banks, which signed a memorandum of understanding (MoU) to jointly conduct a Proof of Concept (PoC) for a digital Swiss franc deposit token.
A deposit token, according to the MoU, is a blockchain-based payment method that mirrors traditional deposits. It allows bank customers to make transactions on a new and innovative payment platform using distributed ledger technology (DLT) and smart contracts.
Initially, the Deposit Token PoC will focus on two use cases: simple payments between participating banks and delivery versus payment transactions with escrow functions.
A successful PoC, according to the Swiss Bankers Association, could pave the way for the widespread adoption of a digital Swiss franc, offering several benefits such as faster and cheaper transactions, enhanced security, and new financial products and services.
The MoU among the Swiss banks aims to address the need for coordination within the broader context of the Swiss Bankers Association’s work on digital currencies.
Firstly, the banks that signed the MoU intend to “design, execute and assess an initial Deposit Token
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