The Swiss National Bank initiated the CBDC pilot project, especially focused on a wholesale CBDC in Switzerland, while commercial banks also joined it.
A CBDC pilot project has recently begun in Switzerland. Led by the Swiss National Bank, the wholesale CBDC pilot has several commercial banks also joining it. The project would eventually lead to the issuance of wholesale CBDCs in the country, giving an impetus to the adoption of digital currencies.
Central bank digital currencies (CBDCs) have seen a rise in interest from several central banks in the recent past. The new Swiss wholesale CBDC, to be called the Swiss franc wCBDC, is also a similar exercise. The project is called Helvetia Phase III, which will test the use cases of the wholesale CBDC. A leading exchange will collaborate with the Swiss National Bank on the project. It will mainly test how the Swiss franc wCBDC settles digital securities transactions.
Meanwhile, the first two phases of the Helvetia Phase, conducted jointly with the BIS Innovation Hub, will provide its findings for this project. Within a live production environment, the commercial banks will issue digital Swiss franc bonds. The project will test the settlement of the bonds against the whole Swiss CBDC.
With similar developments worldwide, analysts have renewed their optimistic predictions for crypto. Recently, an analyst from the leading economic daily Bloomberg said crypto adoption is on track despite several roadblocks.
He provided a detailed analysis for his statement and said in conclusion, “While overly simplistic extrapolations such as this should never be solely relied on for valuation purposes it, the exercise illustrates that users and prices are inextricably linked and that as adoption continues prices are likely to track much higher for some assets.”
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