The Swiss National Bank (SNB) has announced an expansion of its pilot project for institutional central bank digital currencies (CBDCs).
Antoine Martin, a governing board member of the SNB, revealed this development at the Point Zero Forum event in Zurich, Switzerland, as reported by Reuters on Wednesday, July 3.
According to Martin, the SNB will continue offering an institutional CBDC for at least two more years. The project currently involves six commercial banks, including Commerzbank and UBS. To date, the initiative has overseen the issuance of six digital bonds totalling 750 million Swiss francs (approximately $830.38 million USD).
This expansion builds upon the bank’s earlier announcement to extend Project Helvetia III, which began in 2023. The pilot project, launched in December 2023, reportedly experiments with issuing an institutional CBDC based on the Swiss franc and includes participation from Zuercher KantonalBank, UBS, Basler Kantonalbank, Commerzbank, Banque Cantonale Vaudoise, and Hypothekarbank Lenzburg.
The SNB’s continued commitment to CBDC exploration reflects the growing global interest in digital currencies. While CBDCs have been met with varied reception worldwide, some nations are taking decisive steps towards implementation. Notably, the Bahamas became the first country to adopt a CBDC, and recently, its central bank announced new regulations mandating commercial banks to offer the Sand Dollar, its native CBDC.
John Rolle, the Bahamas’ central bank governor, stated that this move aims to solidify the country’s position as a pioneer and leader in e-money. Commercial banks in the Bahamas are being informed of these new regulations, which will require them to support and offer the CBDC to customers within the next two years.
On the other hand, the Bank of International Settlements (BIS), the umbrella organization for central banks globally, recently released a report stating that the likelihood of central banks issuing a wholesale CBDC now surpasses the chances of them releasing a retail one. Notably, these findings support the organization’s prediction of the shift toward digital currencies within the financial sector and build on its previous report in 2023, claiming that CBDCs would undergird monetary policies very soon.
RELATED: Crypto vs CBDCs: Challenging the BIS Perspective on the Future of Money
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
