09 Oct 2019 Morgan Hayze
Swiss National Bank Is Exploring Options For Creating A Digital Currency
Switzerland’s National Bank (SNB) is making small steps towards creating a digital currency. SNB and swiss stock exchange company SIX are exploring the needed tools and resources for the creation of a central bank digital currency. The goal for the new currency is to enable digital trading and settlement for all financial services users.
The campaign is a part of the BIS 2025 innovation hub, which aims to make settlement hassle-free and optimized. SNB and SIX plan to use SIX’s pilot project – SIX Digital Exchange (SDX). The SDX platform is expected to be released in Q1 of 2020 and is claimed to be the first “end-to-end solution for digital asset listing, settlement, trading, and custody.”
SNB will utilize the platform to explore the technical aspects for integrating swiss fiat currency into a digital ledger. One of the options for SNB is the creation of a new digital asset - the digital Swiss franc token. The token would be pegged in a 1:1 ratio by Swiss francs. The other option includes injecting the Swiss Interbank Clearing System into the SDX platform.
“We are happy to help SNB explore new possibilities for digitalizing the Swiss franc through our SDX platform. This way, market participants could use the full power of the distributed ledger technology,” Jos Dijsselhof, CEO of SIX stated.
SNB, in cooperation with BIS, will also work on a side project, allowing extensive tracking for automated digital trading markets.
The Bank of International Settlements, established in the 1930s, is planning to open two more hubs, apart from their Swiss HQ. The centers would be in Hong Kong and in Singapore, as the two countries are known for being crypto-friendly and can boost international collaboration.Cryptocurrency Crypto Market Exchanges News exchange bank cryptocurrency news switzerland Banks