Swiss Central Bank to pilot real-world CBDC.

The chairman of the Swiss Central Bank, Thomas Jordan, has announced the launch of a wholesale CBDC on Switzerland’s SIX digital exchange as part of a pilot project.

During a conference in Zurich on Monday, the Swiss central bank chair announced that the project would begin soon, as reported by Reuters.

The wholesale CBDC pilot project will run for a limited time on the Swiss SIX digital exchange, according to the bank chair.

Swiss Central Bank Remains Cautious of Retail CBDC

The Swiss Central Bank continues to remain skeptical about the idea of a retail central bank-backed digital currency. Swiss bank chair Jordan expressed concern about the potential risks that retail CBDCs could pose for the financial system.

He added that the use of retail CBDCs was more difficult to control.

“We do not exclude that we will never introduce retail [CBDCs], but nevertheless we are a little bit prudent at the moment.”

Speaking on a separate panel at the Zero Point Forum, the central bank’s governor Andrea Maechler said that despite exploring CBDCs, the SNB does not see cash disappearing in Switzerland.

Andrea said that it is the one way that retail households can hold central bank money. “That feature needs to be maintained irrespective of the technology,” she added.

Several Central Banks Crossing the Finishing Line on CBDC

Earlier this month, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, said that at least 10 central banks are “already crossing the finish line” on issuing a central bank digital currency.

However, there is “a lot that is still not decided” when it comes to organizing and regulating CBDCs, she added.

The IMF also revealed earlier that it is working on a worldwide infrastructure for CBDCs in order to allow for interoperability of the digital currencies and increase their utilization.

Currently, over 100 central banks around the world are exploring their own CBDCs.

All countries in the G7 economies have now shifted from the research phase of a CBDC to the development stage, signaling concrete pilot projects.