New BIS Innovation Hub Center Will Study Central Bank Digital Currencies (CBDCs) Integration

Central Bank Digital Currencies (CBDCs) are an important subject in Switzerland right now. The Swiss National Bank (SNB) has recently started a partnership with the Bank for International Settlements (BIS) to begin a study on CBDCs, which will be conducted at the BIS Innovation Hub Center, which is based in Switzerland.

According to the latest announcement made by the banks, this will be one of the three hubs that will be established to research more about the project. The other two will be set in Hong Kong and Singapore.

The focus of the Swiss center will be on how to integrate CBDCs to the blockchain and to analyze the requirements for tracking electronic markets, which are much faster than their non-digital counterparts. The first joint project will be a proof of concept about how to release a CBDC in the country that could facilitate the settlements between financial organizations.

Another important goal of the researchers is to identify more insights and important trends of the technology that can be used by the experts of the bank to innovate in the creation of solutions.

The chairman of the SNB, Thomas Jordan, affirmed that the central bank is following the trend of the market closely and that it is important to cooperate with other banks and the financial sector to develop.

Right now, Switzerland is still unconvinced of CBDCs, but willing to learn more. Jordan recently claimed that stablecoins could hurt the country’s monetary policies and that access to a CBDC could result in a negative outcome. Despite this stance, however, the country seems willing to learn more about the technology before completely disregarding it.

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Author: Denis Miriti

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