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The Swiss National Bank moves forward with its digital franc pilot, extending it by at least two more years.
The Swiss National Bank (<a href="https://crypto.news/tag/swiss-national-bank/" target="_blank" rel="noopener noreferrer nofollow">SNB</a>) has decided to extend its pilot program for issuing a wholesale central bank digital currency (<a href="https://crypto.news/tag/cbdc/" target="_blank" rel="noopener noreferrer nofollow">CBDC</a>) until at least 2026, Bloomberg <a href="http://www.bloomberg.com/news/articles/2024-06-20/snb-extends-digital-franc-pilot-by-at-least-2-years-martin-says?data=89ycryptonews987234" target="_blank" rel="noopener noreferrer nofollow">reports</a>, citing SNB governing board member Antoine Martin.
Initially scheduled to conclude on Jun. 30, the pilot is now expected to include more financial institutions over time, Martin said, adding that wholesale CBDC “can be made available for a wider range of financial transactions.” Thus far, the pilot involves six commercial banks, including UBS Group AG and Commerzbank AG, working in collaboration with Swiss stock exchange provider SIX.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “The future success of the pilot project will largely depend on whether new financial market participants join, whether the volume of transactions increases, and whether additional financial market transactions are settled on this platform.”
 Antoine Martin
</blockquote>
You might also like: <a href="https://crypto.news/central-banks-less-likely-to-issue-retail-cbdcs-in-mid-term-bis-says/" rel="noopener noreferrer nofollow"> Central banks less likely to issue retail CBDCs in mid-term, BIS says </a>
Martin noted though that the decision to extend the pilot doesn’t “constitute a commitment on the part of the SNB to introduce wholesale CBDC or digital SNB Bills on a permanent basis.”
During the trial, the SNB issued money on a blockchain, allowing financial institutions to use the tokenized asset for transactions with the central bank. Unlike retail-focused CBDC pilots, such as those <a href="https://crypto.news/hong-kong-debuts-chinas-digital-yuan-pilot-prohibits-peer-to-peer-transfers/" target="_blank" rel="noopener noreferrer nofollow">seen in China</a>, the digital franc is limited to institutional transactions only.
Bloomberg noted that the digital franc has already demonstrated practical applications, settling at least five <a href="https://crypto.news/switzerland-to-launch-cbdc-pilot-on-six-digital-exchange/" target="_blank" rel="noopener noreferrer nofollow">bond issuances</a> on SIX’s digital exchange in Zurich, including a significant $226 million settlement for a World Bank bond earlier this month.
Read more: <a href="https://crypto.news/bis-and-central-banks-of-france-singapore-and-switzerland-wrap-up-cbdc-project/" rel="noopener noreferrer nofollow"> BIS and central banks of France, Singapore, and Switzerland wrap up CBDC project </a>

Swiss central bank extends CBDC pilot until 2026

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