The Swiss National Bank (SNB) has extended the pilot program for the digital franc, a wholesale central bank digital currency (CBDC), by an additional two years. Antoine Martin, a member of the SNB’s Governing Board, praised the pilot’s achievements since its launch, highlighting its contribution to advancing knowledge of CBDC technology.
With an increased number of financial institutions participating in the extended test, the wholesale CBDC will be able to handle a wider range of financial transactions. This move demonstrates Switzerland’s ongoing commitment to exploring the potential benefits and drawbacks of CBDCs in the financial system.
By expanding the pilot program, the SNB aims to gather more detailed information on the usability and functionality of the digital franc. This could potentially lead to greater adoption or the development of new digital financial instruments.
In other news, the Swiss Financial Market Supervisory Authority (FINMA) has ordered the closure of FlowBank due to bankruptcy. The online bank, FlowBank, which was involved in the cryptocurrency industry, faced financial difficulties with insufficient minimum capital and excessive debt.
