Swiss National Bank Tests Using of Digital Currency in Large Transactions

The Swiss National Bank (SNB) has successfully completed trials of using digital money to carry on wholesale transactions between financial institutions, according to thr Reuters recent report. Issue of SNB’s own digital currency remains an open question.

The trial, dubbed Project Helvetia, was run by the SNB with the involvement of the Bank for International Settlements (BIS) and Swiss bourse operator SIX.

Despite the successful Project Helvetia’s outcome, the Swiss National Bank has been skeptical about digital currencies like Facebook’s Diem, claiming such projects could undermine bank ability to conduct monetary policy.

“The project showed wholesale CBDCs were feasible from a technical and legal viewpoint. However, the outcome did not mean the central bank was committed to issuing one,” the SNB’s governing board member Andrea Maechler said.

Central banks worldwide have been ramping up research into CBDCs after Facebook has unveiled plans for Libra. The Swiss central bank was one of the seven central banks to lay out how a CBDC could look.