Swiss Central Bank Delays CBDC Pilot by Two Years

cryptonews.com:

The Swiss National Bank (SNB) announced on June 20 an extension of its wholesale central bank digital currency (CBDC) pilot program, also known as the “digital franc.”

The expansion will gradually incorporate more financial institutions while evaluating the digital franc’s performance and security in real-world scenarios.

SNB governing board member Antoine Martin revealed that Switzerland postponed the initial pilot date for June 30 by approximately two years until at least 2026.

Today's #Fintech Digest includes the Swiss National Bank (SNB) continuing its Project Helvetia pilot focusing on tokenized securities settlement on SIX Digital Exchange (SDX) in Swiss franc wholesale #CBDC for at least two more years. https://t.co/sIZD0i3wQI pic.twitter.com/oiJLqiUexq

— John Kiff (@Kiffmeister) June 20, 2024

The Swiss CBDC pilot is specifically focused on wholesale applications designed for use between financial institutions rather than retail consumers. This approach differs from retail CBDC pilots in countries like China, where the digital yuan is intended for use by the general public.

Martin emphasized that the wholesale CBDC “can be made available for a wider range of financial transactions.” The pilot currently involves six commercial banks, including UBS Group AG and Commerzbank AG, working in partnership with Swiss stock exchange provider SIX.

Martin argued that the project’s future success hinges on two key factors: attracting new financial market participants and boosting transaction volume. He also highlighted the importance of settling more financial market transactions on the platform.

Martin cautioned that this extension does not guarantee the permanent introduction of wholesale CBDC or digital SNB Bills, however.

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