Swiss National Bank Launches Pilot Project for Wholesale Central Bank Digital Currency
The Swiss National Bank is commencing a groundbreaking pilot project alongside six commercial banks, introducing wholesale central bank digital currency for financial institutions.
π¨π Key Points:
πππ£ππππ’π―π: The pilot, known as Helvetia Phase III, marks the SNB's maiden venture into issuing real wholesale CBDC in Swiss francs on a DLT-based financial market infrastructure. This move signifies a shift from test environments to practical implementation, allowing wholesale CBDC for the settlement of genuine bond transactions.
The project utilizes the SDX platform, SIC infrastructure, and SIX SIS for tokenization and integration with the traditional bond settlement infrastructure.
πππ ππ§π ππ¨π€ππ§π’π³ππ ππ¬π¬πππ¬: The use of DLT and tokenized assets within the regulated financial system promises efficiency gains and increased transparency. Central banks are exploring how token transactions between financial institutions can be settled in central bank money, ensuring stability and efficiency in the financial system.
πππππ₯ππ¦ππ§π ππ¨πππ₯π¬: Earlier in March 2023, the SNB announced the examination of three models for settling tokenized asset transactions. The upcoming pilot adopts the issuance of wholesale CBDC for settling tokenized assets, building on earlier findings from Project Helvetia phases.
The pilot project does not signify a commitment to introduce wholesale CBDC permanently. Rather, it aims to test different settlement models for tokenized assets.