Blockchain-based digital currency is a viable option

The Swiss National Bank (NBS) and the Bank for International Settlements (BIS), considered to be the central bank for central banks, are exploring a digital currency based on blockchain together.

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1 Digital currencies are a viable option

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SNB announced that it has signed an operational agreement with BIS to open a dedicated center in Switzerland, which will conduct research on the digital currency project based on the blockchain.

“This new form of digital money of the central bank would facilitate the settlement of tokenized assets between financial institutions”,

said SNB.

The project is currently developing a proof of concept in partnership with the Swiss Stock Exchange SIX Group, SIX Digital Exchange (SDX).

Digital currencies are a viable option

In a separate statement, SIX said SDX will use its own platform to explore the technical possibilities for integrating digital central banking into blockchain platforms.

Some of the aspects evaluated are the connection of the existing Swiss interbank clearing system and the issuance of digital tokens in Swiss francs by SNB.

“Our central bank digital proof of concept for financial market participants on DLT platforms will not only provide technological information, but will send an important signal to all market participants to take action to explore DLT technology. and digital assets ”,

said Thomas Zeeb, SIX platform director.

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The idea of the CBDC is viewed positively by most central banks and has gained more and more momentum, especially after the launch of the Libra project. Many central bank governors agree that financial systems require major changes, and blockchain-based digital currencies are a viable option.