- The performance, security, and scalability of the digital franc will be further evaluated.
- A member of the SNB’s Governing Board lauded the pilot’s achievements since its debut.
An extra two years have been added to the digital-franc pilot program by the Swiss National Bank (SNB). Switzerland is clearly dedicated to investigating the possibilities of CBDCs and how they may be integrated into the financial system, as shown by this action.
The performance, security, and scalability of the digital franc will be further evaluated in real-world circumstances. As the pilot program continues to evaluate its implications, practicality, and impact.
Banking on CBDC
A wholesale central bank digital currency (CBDC) pilot program has been significantly extended for at least two more years by the Swiss National Bank (SNB). A member of the SNB’s Governing Board, Antoine Martin, lauded the pilot’s achievements since its debut in December 2022. Emphasizing its contribution to growing knowledge of CBDC technology.
With more financial institutions taking part in the expanded test. The wholesale CBDC will be able to process more types of financial transactions. In line with worldwide trends towards digital innovation in finance, this program showcases Switzerland’s persistent dedication to investigating the possible advantages and disadvantages of CBDCs.
The SNB hopes to collect more detailed information on the digital franc’s usability and functionality by expanding the pilot program. This might lead to wider acceptance or new innovations in digital financial instruments.
The Swiss Financial Market Supervisory Authority (FINMA) has recently ordered FlowBank’s closure owing to bankruptcy. A Swiss online bank called FlowBank that was involved in the cryptocurrency industry was forced to take swift action by FINMA after it was found to have insufficient minimum capital and heavy debt.
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