A Swiss CBDC (Central Bank Digital Currency) is likely on the way now that the top financial institutions of the country have partnered up on the same issue.
According to the latest developments, the Swiss National Bank announced that the bank had signed an Operational Agreement with the Switzerland-based Bank for International Settlements.
The agreement covers exploring new ways of making the central bank’s digital currency accessible for trading and settlements amongst financial market players.
Swiss CBDC in the game
The BIS Innovation Hub Centre would be established in Switzerland, and the central bank and the Swiss stock exchange would be collaborating on the blockchain-based virtual assets.
The Swiss stock exchange SIX stated that the sale and purchase of the assets based on Digital Ledger Technology (DLT) can potentially cause a reduction in counterparty risk and can generate tremendous economic opportunities.
According to the press release, other than Switzerland, the other Hub Centers in this initial phase will be established in Singapore and Hong Kong.
China, on the other hand, is also among the countries looking to create a currency similar to Swiss CBDC. Whereas, the concept is a prevailing one given the current economic condition and the United States’ trade war with China.