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<p class="is-style-lead">The Swiss National Bank (SNB) is set to introduce a Central Bank Digital Currency (CBDC) for wholesale payments on the country’s SIX Digital Exchange, marking Switzerland’s entry into the expanding arena of digital currency innovation.</p> 
<p>Swiss National Bank (SNB) has made a groundbreaking <a href="https://www.reuters.com/markets/currencies/snb-launch-digital-currency-pilot-chairman-2023-06-26/" data-type="URL" data-id="https://www.reuters.com/markets/currencies/snb-launch-digital-currency-pilot-chairman-2023-06-26/" target="_blank" rel="noreferrer noopener">announcement</a> with its decision to commence issuing a CBDC specifically for wholesale payments on Switzerland’s SIX Digital Exchange, according to its chairman Thomas Jordan. </p> 
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   <p lang="en" dir="ltr">🚨🚨Swiss National Bank to launch CBDC on Switzerland's SIX digital exchange <br><br>"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," Chairman Thomas Jordan<br><br>CBDC'S HAPPEN SLOWLY… <a href="https://t.co/o6BRKCUI5M" target="_blank">pic.twitter.com/o6BRKCUI5M</a></p>— Kyle Chassé (@kyle_chasse) <a href="https://twitter.com/kyle_chasse/status/1673281451096408064?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 26, 2023</a>
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<p>This move indicates a shift towards digital financial systems and places Switzerland alongside other nations such as China, India, and Australia that are similarly advancing their CBDC technology.</p> 
<p>While addressing the Point Zero Forum in Zurich, Jordan emphasized that this digital currency initiative is more than a mere trial. The central bank’s foray into <a href="https://crypto.news/market-cap/" target="_blank" data-type="URL" data-id="https://crypto.news/market-cap/" rel="noreferrer noopener">digital currency</a> will create a real monetary equivalent to bank reserves for the purpose of trialing genuine transactions among market participants.</p> 
<p>The experimental Swiss CBDC is earmarked for use within the financial sector, thus making Switzerland part of the growing list of 18 countries currently operating <a href="https://crypto.news/cbdcs-are-popular-all-over-the-world/" data-type="URL" data-id="https://crypto.news/cbdcs-are-popular-all-over-the-world/" target="_blank" rel="noreferrer noopener">CBDC pilot</a> programs, according to the CBDC Tracker from the Atlantic Council.</p> 
<p> You might also like: <a href="https://crypto.news/swifts-phase-two-cbdc-pilot-program-takes-flight/"> Swift’s phase two CBDC pilot program takes flight </a> </p> 
<p>CBDCs, much like stablecoins, are digital tokens whose value is linked to a sovereign currency, in this case, the Swiss Franc. However, these tokens differ in that they are issued by the government or central bank, rather than private companies on public networks. </p> 
<p>The primary purpose of a wholesale CBDC, such as this, is to facilitate large-scale transactions between financial institutions like bank-to-bank transfers. Jordan’s announcement thus aligns Switzerland with Saudi Arabia among countries currently testing a <a href="https://crypto.news/the-new-york-fed-and-singapores-mas-join-resources-to-research-the-advantages-of-wholesale-cbdcs/" target="_blank" data-type="URL" data-id="https://crypto.news/the-new-york-fed-and-singapores-mas-join-resources-to-research-the-advantages-of-wholesale-cbdcs/" rel="noreferrer noopener">wholesale CBDC</a>.</p> 
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<p>On the topic of retail-facing CBDCs, Jordan conveyed a sense of caution from the Swiss central bank. He didn’t exclude the possibility of introducing retail CBDCs in the future, but maintained a conservative stance for the time being.</p> 
<p>In 2021, Thomas Moser, an Alternate Member of the SNB’s Governing Board, voiced his preference for a CBDC over a <a href="https://crypto.news/federal-reserve-chair-powell-emphasizes-need-for-strong-oversight-of-us-stablecoins/" target="_blank" data-type="URL" data-id="https://crypto.news/federal-reserve-chair-powell-emphasizes-need-for-strong-oversight-of-us-stablecoins/" rel="noreferrer noopener">stablecoin</a> denominated in Swiss Francs, given the absence of counterparty risk in the former.</p> 
<p>Before the establishment of the <a href="https://crypto.news/six-digital-exchange-plans-native-tokens/" data-type="URL" data-id="https://crypto.news/six-digital-exchange-plans-native-tokens/">SIX Digital Exchange</a> in 2021, the SNB had partnered with the SIX Group in 2019 to develop a proof-of-concept for a digital currency. Jordan’s recent statements suggest the pilot program for the wholesale CBDC will be launched soon and continue for a specified duration.</p> 
<p> Read more: <a href="https://crypto.news/ripple-launches-cbdc-and-stablecoin-issuance-platform/"> Ripple launches CBDC and stablecoin issuance platform </a> </p>

SNB prepares for launch of digital currency pilot program

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