Swiss National Bank considers expanding digital currency project
The Swiss National Bank (SNB) considers expanding its pilot project involving wholesale central bank digital currencies (CBDCs). The bank’s officials expressed interest in developing the pilot further by including more banks and increasing the volume of transactions.
In June 2024, the SNB announced it would continue providing a wholesale central bank digital currency (CBDC) for at least two more years, extending a pilot called Project Helvetia III, which began in 2023. Six banks, including UBS and Commerzbank, are currently participating in the project, which has facilitated six digital bond issuances totalling 750 million Swiss francs (USD 830.38 million).
Previous developments of Project Helvetia
In January 2022, The Swiss National Bank (SNB), BIS, and SIX successfully tested the integration of wholesale CBDC settlement with commercial banks, covering a range of transactions in Swiss francs. This second phase of Project Helvetia, involving Citi, Credit Suisse, Goldman Sachs, Hypothekarbank Lenzburg, and UBS, demonstrates the operational feasibility of integrating a wholesale CBDC into existing banking systems using distributed ledger technology.
The project aims to prepare for a future where more financial assets are tokenized and emphasizes the need for central bank money settlement in systemically important infrastructures.
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