Swiss National Bank Trials CBDC in Transactions With Five Banks – Finance Bitcoin News


The
Swiss
National
Bank
has
successfully
employed
a
wholesale
CBDC
to
settle
transactions
with
five
commercial
banks,
the
monetary
authority
announced.
The
tests
are
part
of
an
experiment
carried
out
together
with
the
Bank
for
International
Settlements
and
Switzerland’s
financial
services
provider
SIX.

Swiss
Central
Bank
Tests
Integration
of
Wholesale
CBDC
Settlement
With
Private
Banks

A
wide-range
of
transactions
involving
a
wholesale
central
bank
digital
currency
(CBDC)
have
been
processed
during
the
second
phase
of
Project
Helvetia,
the
Swiss
National
Bank
(SNB)
revealed
in
a
press
release
issued
on
Thursday.

The
trials
are
conducted
as
part
of
a
joint
initiative
between
the
SNB,
the
Bank
for
International
Settlements
(BIS),
and
SIX,
the
main
provider
of
financial
infrastructure
services
in
Switzerland.
Five
commercial
banks
also
participated

Citi,
Credit
Suisse,
Goldman
Sachs,
Hypothekarbank
Lenzburg,
and
UBS.

The
experiment,
which
took
place
in
the
last
quarter
of
2021,
explored
the
settlement
of
interbank,
monetary
policy,
and
cross-border
transactions
on
the
test
systems
of
SIX
Digital
Exchange
(SDX),
the
Swiss
real-time
gross
settlement
system
SIX
Interbank
Clearing
(SIC),
and
core
banking
systems,
SNB
detailed.

The
Swiss
central
bank
and
the
other
banks
integrated
a
wholesale
CBDC
in
their
existing
back-office
systems
and
processes.
SNB
notes
that
in
the
future,
a
growing
number
of
financial
assets
will
be
tokenized
while
financial
infrastructures
will
run
on
distributed
ledger
technology
(DLT).
Regulators
may
need
to
cover
tokenized
asset
markets
in
their
monetary
policies,
the
authority
said
and
elaborated:

International
regulatory
standards
suggest
that
operators
of
systemically
important
infrastructures
should
settle
obligations
in
central
bank
money
whenever
practical
and
available.
While
none
of
the
existing
DLT-based
platforms
are
systemic
yet,
they
may
become
so
in
the
future.

“To
continue
fulfilling
their
mandates
of
ensuring
monetary
and
financial
stability,
central
banks
need
to
stay
on
top
of
technological
change.
Project
Helvetia…
allowed
the
SNB
to
deepen
its
understanding
of
how
the
safety
of
central
bank
money
could
be
extended
to
tokenized
asset
markets,”
added
Andréa
M.
Maechler,
member
of
the
bank’s
governing
board.

The
Swiss
National
Bank
remarks
that
Helvetia
is
only
an
exploratory
project,
suggesting
it
should
not
be
viewed
as
plan
to
issue
a
wholesale
CBDC.
In
December,
the
SNB,
along
with
the
Bank
of
France
and
BIS,

carried
out

another
experiment,
testing
the
application
of
wholesale
CBDC
in
cross-border
payments.
Project
Jura
employed
DLT
and
was
also
realized
with
the
support
of
private
sector
companies.

Tags
in
this
story

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,

CBDC
,

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Bank
,

Crypto
,

Cryptocurrencies
,

Cryptocurrency
,

Digital
Currency
,

DIstributed
Ledger
,

DLT
,

Experiment
,

Helvetia
,

Jura.
,

project
,

SDX
,

six
,

SNB
,

swiss
,

Swiss
National
Bank
,

Switzerland
,

Test
,

Trial
,

Wholesale
,

wholesale
CBDC



Do
you
expect
the
Swiss
National
Bank
to
eventually
issue
a
wholesale
CBDC?
Let
us
know
in
the
comments
section
below.

Lubomir
Tassev

Lubomir
Tassev
is
a
journalist
from
tech-savvy
Eastern
Europe
who
likes
Hitchens’s
quote:
“Being
a
writer
is
what
I
am,
rather
than
what
I
do.”
Besides
crypto,
blockchain
and
fintech,
international
politics
and
economics
are
two
other
sources
of
inspiration.




Image
Credits
:
Shutterstock,
Pixabay,
Wiki
Commons


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