The Swiss National Bank (SNB) sees no need to switch to a central bank digital currency (CBDC), Handelszeitung reports, citing SNB's Chief Economist, Carlos Lenz. According to him, decentralization is not what is needed for the national currency, which depends on full control by the state.
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Thus, Switzerland will continue to prioritize electronic settlement and cash flow, continuing the CBDC research. Lenz also added there is no risk that the Swiss franc could be supplanted by other currencies if Switzerland remains on the sidelines in the development of digital currencies.
"We had such discussions when the euro was introduced. There were also concerns that payments would suddenly be made in euros. But that did not happen," he said.
The SNB Chief Economist notes there are many technological possibilities for the digital franc. With that being said, blockchain is very inefficient, emphasized Lenz.
Lenz's comments follow the recent announcement made by Banque de France, according to which, the French central bank successfully completed of a CBDC experiment with SEBA Bank. The goal of the experiment was to simulate the settlement of listed securities. Banque de France said it simulated CBDC issuance on a public blockchain network by "preserving control and confidentiality of transactions," with the help of smart contracts.
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