Governments across the globe seem to be fond of the idea of a digital currency, however, they continue to despise crypto assets. Yet, the introduction of the Central Bank’s Digital Currency [CBDC] into the global financial arena is substantial proof that the world has moved ostensibly towards digitalization. The latest news from the Swiss National Bank reveals that the development of CBDC is heading in a positive direction.
Swiss National Bank Joins Forces With BIS
A recent report revealed that the Swiss National Bank [SNB] and the Bank for International Settlements [BIS] was prepping to test a CBDC by the end of 2020. The collaboration of these banks came to light at the Bund Summit held on Sunday in Shangai. The Head of Innovation Center at BIS, Benoit Coeure spearheaded the summit and revealed that both the banks were going to roll out a CBDC in the proof-of-concept stage.
With the intention of launching a CBDC by the end of this year, Coeure pointed out that the incorporation of proof-of-concept would allow the experimenting of retail CBDC. Researching central bank digital currencies has been overseen by Coeure at BIS. The platform purposes to draw connections between the existing payment systems along with several other elements.
The partnership between the SNB and BIS dates back to 2019. Both the banking giants collaborated to explore the prospects of blockchain-based tokens. For its latest venture, however, BIS aims to bolster its level of blockchain. During the early stages of their partnership, SNB had stated,
“This new form of digital central bank money would be aimed at facilitating the settlement of tokenized assets between financial institutions.”
BIS further announced its plans on joining forces with several other banks across the globe. Hoping to inspect its cross-border abilities, Coeure revealed that BIS would work closely with the Hong Kong Monetary Authority as well as the Bank of Thailand.
While China is well ahead in its CBDC game, other countries along with banks have been trying to catch up with the Asian country.