Thomas Jordan, chairman of the Swiss National Bank (SNB), reportedly believes that the risks of a central bank digital currency (CBDC) outweigh the benefits.
Speaking at an event in Zurich, Jordan said the SNB does not think it is necessary to roll out a CBDC to the public now, Reuters reports.
“Consumers and businesses already have access to a wide range of efficient and innovative payment instruments offered by the private sector.
Retail CBDC could fundamentally change the current monetary system and the role of central banks and commercial banks, with far-reaching consequences for the financial system.”
Last year, the SNB launched a pilot program for central bank digital currencies for wholesale. Wholesale CBDCs are limited to large transactions between financial institutions.
Jordan said at the time:
“This is not just an experiment, it will involve real money equivalent to bank reserves and the aim is to test real transactions with market participants…
We do not rule out that we will never introduce retail [CBDCs] But we are still a bit cautious at the moment.”
This week, Jordan said Swiss Franc CBDCs “can be issued on a third-party platform and used to settle tokenized assets safely and efficiently.”
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