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Switzerland will stand outside the race to release CBDC copper from governments

Unlike China, France, or Italy, Switzerland announced that it would not follow the trend of CBDC (Central Bank Digital Currency) issuance. Representatives of the Swiss government said the development of these new currencies did not bring many benefits to the national financial system at present.

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Switzerland will miss the wave of CBDC releases

The Swiss Federal Council has just released a research report on the pros and cons when deciding to issue CBDC. According to the report, the CBDC will not create new development opportunities nor any practical benefits for the national financial system. Instead, it is highly likely that the currency will make the economic situation in Switzerland unstable.

The governments’ movement to release CBDC seems to originate from China. After Facebook announced its Libra project, China has aggressively accelerated the pace of its DC/EP coin issuance. And things got all the higher when President Xi Jinping voiced his support for blockchain and said that this new technology would bring much economic innovation to the country.

Moreover, as the demand for cryptocurrencies is increasing, some countries, like it or not, are in a position to consider the possibility of issuing cryptocurrencies. After ten years of Bitcoin development, we can see just how beneficial and valuable cryptocurrencies are for everyday life, besides speculation. Moreover, CBDCs are said to possess more benefits. This includes providing a valid payment system, mitigating tax violations, and money laundering. It also contributes to more stable national monetary policies.

However, the Federal Council still believes in its report. They argue that the harmful nature of CBDC goes far beyond its benefits. And it is not only CBDC that can bring better solutions to Switzerland.

Nonetheless, the Federal Council has been more open to creating a digital Franc, explicitly designed for investors in the financial market. According to the report, a “wholesale token” developed and circulated by the National Bank of Switzerland (SNB) will help increase the efficiency in trade, cross-border payments, and securities management.

Following the release of the report, the Federal Council announced that it would continue to monitor the development of the pros and cons of the launch of a digital Franc. Meanwhile, the European Central Bank (ECB) plans to accelerate the growth of a CBDC. As expected of the unpredictable world, nine people ten ideas. Let’s wait and see what governments will continue to make new moves in the future offline!

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