The Swiss National Bank (SNB) has announced the launch of its wholesale central bank digital currency (CBDC) in partnership with six commercial banks in the country. The Swiss CBDC, dubbed the Digital Swiss Franc (D-CHF), is a digital form of the Swiss national currency (CHF) and is designed to be used exclusively for interbank settlements.
The six commercial banks involved in the project are PostFinance, Credit Suisse, Julius Bär, Deutsche Bank, KPMG Switzerland, and UBS. According to the SNB, these banks will be integrated into the currency platform so that they can use the system for interbank payments. The central bank also noted that it will work with additional financial institutions in the coming months and that it will eventually open up the D-CHF platform to the general public.
The SNB said that the launch of the D-CHF is part of its efforts to make Switzerland an international leader in the areas of financial innovation and digital currency solutions. The central bank also noted that the D-CHF represents an important step in its agenda to explore new payment systems and technologies in the country.
By launching the D-CHF, the SNB hopes to bolster efficiency and reduce costs associated with payments between financial institutions. It also hopes that the new system will improve the accuracy, speed, and security of interbank transactions. Finally, the SNB also wants the new system to improve the customer experience by offering an instant payments platform that is more reliable and secure than existing protocols.