Younger Analysis: Swiss National Bank Launches Central Bank Digital Currency (MNBC) Pilot Project on SIX Exchange

2023-06-26 17:13:59

The Swiss National Bank (SNB) will launch its central bank digital currency (MNBC) pilot project on the SIX Exchange, in order to explore the opportunities and risks associated with this new generation of currencies for commercial establishments.

The project involving a so-called “wholesale” MNBC aims to test payment traffic in a digital financial system, SNB President Thomas Jordan said Monday in Zurich as part of the Point Zero Forum, insisting on the openness of the issuing institution to this new type of currency.

But if the MNBCs present an opportunity to reduce credit risks, they can also bring new ones and it is necessary “above all to keep in mind the regulatory and legal aspects”, warned the central banker, while posting a new times its reluctance to the idea of ​​a “retail” digital currency usable by individuals.

In January 2022, the operator of the Swiss stock exchange announced the success of phase II of the Helvetia project, an experiment carried out jointly by the Bank for International Settlements (BIS), the SNB and SIX, together with five commercial banks, among including Hypothekarbank Lenzburg and UBS, which had demonstrated the operational feasibility of integrating an MNBC into existing banking systems.

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