Swiss National Bank Gears Up for Real Transaction Testing of Wholesale CBDC

The Swiss National Bank (SNB) has stated that it will soon commence a pilot project for a wholesale central bank digital currency (wCBDC).

This initiative, announced by the bank's chair, Thomas Jordan, underscores the progressive approach Switzerland is taking toward the digitization of its financial infrastructure.

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According to the Reuters report shared on June 26th, the Swiss central bank will launch the pilot "soon."

During Jordan's address at the Point Zero Forum held in Zurich on June 26th, the chair of SNB revealed that wCBDC will be issued via the Swiss SIX digital exchange for a restricted period.

When talking about the project, Jordan emphasized the tangible nature of this project, stating:

This is not just an experiment; it will be real money equivalent to bank reserves and the objective is to test real transactions with market participants.

In terms of a retail CBDC, Jordan expressed caution but did not entirely dismiss the possibility of its eventual rollout.

On a separate note, Andréa Maechler, another member of the SNB governing board, stated at the Point Zero Forum that the central bank does not anticipate the complete replacement of cash in Switzerland. This comment echoed her statement last year that "the risks outweigh the benefits" concerning a retail CBDC.

The announcement of the wCBDC pilot project by the Swiss National Bank is a significant step towards the adoption of digital currencies by the Swiss financial system. While the authorities maintain a cautious approach towards the introduction of a retail CBDC and the complete eradication of cash, the commitment towards exploring and testing the potential of wCBDCs is clear.

In other Switzerland-related news, in April, a Swiss court granted FTX approval to sell its European business.