Switzerland does not need digital currency

The Swiss government does not see the point in creating a digital currency of the central bank. The government asked the country’s parliament to study the feasibility of creating an electronic Swiss franc.

“The universally available digital currency of the central bank does not currently bring any additional benefits to Switzerland. Instead, it will lead to new risks, especially with regard to financial stability, ”the cabinet said after the meeting on Friday.

The Swiss National Bank is also skeptical of the idea of ​​offering an electronic Swiss franc to the general public. Along with the Bank for International Settlements, the Swiss National Bank is exploring the possibility of a wider use of digital currencies of the central bank. The central bank’s digital currency refers to money that the central bank will digitally create and make available to the general public. It will complement existing forms of money, such as banknotes and deposits held by commercial banks at the central bank.

The government noted that most national banks are studying this topic and the possible consequences, but only a few, for example, in China and Sweden, plan to issue digital currencies in the short and medium term.